NAHARLAGUN, May 20: Reduction in rate of employees’ provident fund (EPF) contributions from 12 percent to 10 percent of basic wages and dearness allowances is expected to benefit 4.3 crore employees and 6.5 lakhs employer establishments to tide over the immediate liquidity crisis to some extent during the lockdown period to prevent spread of Covid-19, said an official statement from the Employees’ Provident Fund Organisation (EPFO).
The reduction in EPF contribution for the months of May, June and July under the Employees Provident Funds and Miscellaneous Provisions Act, 1952, as part of Atma-Nirbhar Bharat package was announced by the central government on 13 May.
The statement also clarified that rate reduction in EPF contribution is not applicable to establishments, like central and state public sector enterprises or any other establishment owned or controlled by or under control of the central or state governments.
It is also not applicable for PMGKY beneficiaries, “since the entire employees EPF contributions of the monthly wages are being contributed by the central government,” the statement added.
