Finance Minister Nirmala Sitharaman had last week (May 13) announced that for the next three months employee provident fund (EPF) contribution will be 10 per cent each for employees and employers as compared to the statutory obligation of 12 per cent. The move is to increase take-home salary for employees and to give relief to employers in payment of provident fund.
The government has decided to continue EPF support for business and workers for 3 more months providing a liquidity relief of Rs 2,500 crores, the FM said. Under this new provision, the employers will continue to pay 12 per cent, while employees will have the option to pay 10 per cent for the next three months.
However, this does not apply to those companies where government is giving the entire 24 percent contribution towards EPF. Furthermore, in the case of the central public sector enterprises and state public sector, this exempt will not be applicable. They will continue to pay 12% as EPF contribution.