Government to pay EPF Contribution for Next 3 months amid Coronavirus
Everyone knows that the world is facing the threat of Novel Coronavirus disease, also called COVID-19. As the total number of cases of COVID-19 infection in India has reached a terrifying stage, our government has now imposed a lockdown throughout the country to mitigate the threat of the coronavirus infection.
Due to this lockdown which is to continue till April 14, the businesses have come to a halt, because of which the businessmen are unable the regular compliance. In a bid to provide relief to the business community as well as the working class amid the Coronavirus pandemic, the government has given certain relaxations in the labor laws. Recently, the government has given more time for payment of ESIC contribution.
In this regard, the Honorable FM Smt. Nirmala Sitharaman had conducted a live press conference over Video Conferencing on 26th March 2020 in order to give relaxation in EPFO rules. She has announced that for the next 3 months, the EPF contribution share of the employees as well as employers will be paid by the government.
This has come as a huge relief for the employers having EPF registration as well as the employees, who are currently doing work from home.
1. How will the PF contribution be paid?
At the press conference held today, the Honorable Finance Minister has announced some measures under the PM Garib Kalyan Yojana for the next 3 months. These measures are directed towards the employers having EPF registration and the employees. The government has proposed to pay:-
12% of EPF contribution of the employers having PF registration and
12% of EPF contribution of the employees;
Which constitutes a total of 24% of the monthly wages of employees into their PF accounts for the next 3 months.
This step would avoid disruption in their employment.
2. Who will get the benefit of this EPF relief?
The aforesaid relief in respect of the payment of PF contribution is for those establishments that having employer PF registration, where there are up to 100 workers, who are wage-earners below ₹15,000/- per month and are at risk of losing their employment.
3. Which other relief has been given to the Indian employees?
Apart from the abovementioned relief, the government has proposed to amend Employees’ Provident Fund Regulations. Under this, the workers shall be allowed to withdraw from their EPF accounts:-
- A non-refundable advance of 75% of the EPF amount OR
- 3 months of their wages;
- Whichever is lower
4. Who will benefit from this relief?
The families of 4 crore workers registered under the EPFO can get the benefit from the window of withdrawing the 75% of the PF amount. This can provide them relief in case of any contingency that may arise in this lockdown situation.
These are the reliefs announced today for the Indian businesses and the working class by the Finance Minister.
In case you require any sort of assistance regarding the EPF registration, please feel free to contact us at 8881-069-069.
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