India Inc gets relief through ESIC, EPFO is another excellent news for everyone in the formal sector in India. This relief is available as India is still fighting with Coronavirus in its second wave. Almost every part of the nation is under lockdown. Therefore, the pandemic shut businesses down and caused many problems to India Inc.
In this article, we will read about the detailed news in which India Inc gets relief through ESIC, EPFO. Besides, we will also read about ESIC Registration and EPF Registration.
How India Inc gets relief through ESIC, EPF?
In the face of a raging second wave of the epidemic that has forced enterprises to close in numerous states due to severe lockdowns, the Union government has taken steps to provide relief and funds to India Inc through its social security institutions.
The following institutions will be providing help to India Inc in the time of crisis.
- The labor ministry agrees to provide enterprises the option of submitting Employees State Insurance Corporation (ESIC) deductions and contributions for April by mid-June. Consequently, ESIC is offering a boost in liquidity of Rs 1,400 crore to those having ESIC Registration.
- Similarly, The ministry is also exploring a move through the Employees’ Provident Fund Organisation (EPFO). It will provide a significant liquidity boost of Rs 12,500 crore to firms and other businesses having EPFO Registration that is also seeing a drop in demand.
As a result, experts estimate that ESIC and EPFO will together offer liquidity of at least ₹14,000 crores. However, if the relief decision extends to two months, then the amount may also double.
ESIC Relief package to India Inc.
As we know, Industrial employers having ESIC Registration currently contribute 3.25 percent of their base pay each month, while employees contribute 0.75 percent for ESIC statutory deductions.
Accordingly, This statutory deduction makes the total amount to ESIC around Rs 16,745 crore each year. Therefore, extending the window will benefit employers.
EPFO Relief Package to India Inc
Similarly, Every month, the EPFO takes around Rs 12,500 crore from subscribers through statutory deductions. While the employee contributes 12% of his or her basic wage, the company contributes an equal amount.
As a result, companies with ESIC Registration and EPFO Registration must submit deductions within 15 days of the month’s end. An extension of the submission date may provide employers with greater short-term funds.
Last Year’s Relief Packages
As per the government official, the government granted relief packages for at least three months in the previous year.
However, at present, the MSME Sector is asking for the government’s support as the second wave of the Covid-19 crisis has hardly hit their businesses.
What are ESIC Registration and EPF Registration?
In India, the two most popular government schemes are EPF and ESIC. A certain percentage is withdrawn from the employee’s salary in both schemes, and the employer adds a comparable amount too. Accordingly, the total amount is settled into the employee’s account of EPFO and ESIC.
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