The government will pay the employee provident fund (EPF) contribution both of the employer and the employee (12% each) for the next three months, Union Finance Minister Nirmala Sitharaman said on Wednesday.
The move will benefit over 4.8 crore employees in the organised sector.
The government has also announced a ₹1.70 lakh crore economic package for host of beneficiaries in the wake of Covid-19 spread that has crippled economic activity and wages across sectors.
Ms. Sitharaman said the PF contribution decision has been taken to ensure that employees’ EPF continuity is not lost.
This will be applicable to all those establishments having employed up to 100 employees and about 90% of which earn ₹15,000 per month, she added.
The government will also amend the regulations for the scheme to allow employees draw up to 75% of their non-refundable advance or up to three months of wages, whichever is lower.