Cabinet approves the proposal to extend the EPF contribution 24% for another three months
- Cabinet approves the proposal to extend the EPF contribution 24% (12% employees share and 12% employers share) for another three months from June to August 2020 under PMGKY/AATMANIRBHAR BHARAT
This approval is in addition to the existing scheme for the wage months of March to May 2020 approved on 15.04.2020. The total estimated expenditure is of Rs.4,860 crore. Over 72 lakh employees in 3.67 lakh establishments will be benefitted.
Salient Features:
The salient features of the proposal are as under:
- For the wage months of June, July, and August 2020, the scheme will cover all the establishments having up to 100 employees and 90% of such employees earning less than Rs. 15,000 monthly wage.
- About 72.22 lakh workers working in 3.67 lakh establishments will be benefited and would likely to continue on their payrolls despite disruptions.
- The government will provide Budgetary Support of Rs.4800 crore for the year 2020-21 for this purpose.
- The beneficiaries entitled to 12% employers' contribution for the months of June to August 2020 under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY) will be excluded to prevent overlapping benefit.
- Due to prolonged lockdown, it was felt that businesses continue to face a financial crisis as they get back to work. Therefore, the Hon'ble FM, as part of Aatmanirbhar Bharat, announced on 13.5.2020 that the EPF support for business and workers will be extended by another 3 months viz. for the wage months of June, July, and August 2020.