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Cabinet approves extension of EPF contributions by Government till August

Union I&B Minister Prakash Javadekar during a press conference on cabinet decisions, during Unlock 2.0, in New Delhi, Wednesday, July 8, 2020.

Union I&B Minister Prakash Javadekar during a press conference on cabinet decisions, during Unlock 2.0, in New Delhi, Wednesday, July 8, 2020.   | Photo Credit: PTI

The Union Cabinet on Wednesday approved an extension of the support being given to establishments with up to 100 workers in the form of the government making the Employees Provident Fund (EPF) contribution instead of the employees and the employers.

 

As part of the economic package for the COVID-19 crisis period, the government had announced that it would pay both the employees’ and employers’ 12% share each under EPF from March till May. The Cabinet extended the scheme for three months, from June to August.

 

“The total estimated expenditure is of ₹4,860 crore. Over 72 lakh employees in 3.67 lakh establishments will be benefited,” the government said.

 

The scheme covers establishments that have up to 100 employees, of which 90% have salaries less than ₹15,000 a month.

Also read: Government to pay employer, employee’s PF contribution for 3 months

 

“Due to prolonged lockdown, it was felt that businesses continue to face financial crisis as they get back to work,” the government statement said, adding that Finance Minister Nirmala Sitharaman had announced the three-month extension on May 13.

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Printable version | Aug 12, 2020 3:47:09 PM | https://www.thehindu.com/news/national/cabinet-approves-extension-of-pf-contributions-by-government-till-august/article32022272.ece

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