The #TakeHome #Salary for employees will go up as EPF Contribution is reduced by Center to 10% for the next 3 months from its regular 12%.
The government says that this move will provide relief to 6.5 lakh establishments and will provide Rs 6,750 crore worth of liquidity over the next three months.
Finance Minister Nirmala Sitaram on Wednesday announced the decision of reducing the EPF contribution by 2% from its regular 12%. This will help increase the #takehome salary for employees.
But it also says that the State-Run Entities will not be applicable under this scheme.
“It will also reduce the cost to the employers, especially for international workers where the company picks up the cost, ” said Saraswathi Kasturirangan, Partner, Deloitte India.
This scheme is applicable for workers who are not eligible for 24 percent EPF support under PM Garib Kalyan package and its extension.
However, this is only for those establishments that have up to 100 employees and 90 percent of whom earn under Rs 15,000 per month.
This provision was further extended by another three months on Wednesday. The FM had also said that the provident scheme regulations will be amended to allow the non-refundable advance of 75 percent or three months’ wages, whichever is lower. This will benefit 4.8 crore workers who are registered with the EPF.
SOURCE: news18.com
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