Employers’, employees’ contribution towards EPF reduced: FM Sitharaman

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New Delhi: The statutory provident fund or PF contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishments covered by EPFO for the next 3 months, announced Union Finance Minister Nirmala Sitharaman on Wednesday.

The EPF contribution is being reduced for businesses and workers for 3 months, amounting to liquidity support of Rs 6750 crore, the FM also said. This will provide more take-home salary to employees and to give relief to employers in payment of PF dues.

However, the CPSEs and State PSUs will continue to contribute 12% as employer contribution, Sitharaman added.

This scheme will be applicable for workers who are not eligible for 24% EPF support under PM Garib Kalyan package and its extension, she said.

This will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 crore such employees.

The Finance Minister made the above announcements briefing the media today to give the details of the Rs 20 lakh crore economic stimulus package announced by PM Modi yesterday.

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