If you are employed and your employer is subject to some of the government’s stated conditions, then you will not have to worry about contributing your salary’s PF account for the next 3 months. PF money will not be deducted from your salary for the next three months provided your employer fulfills these rules.
What has been said in the Government’s decision?
India has said that it will pay the contribution of the employer and the employee (12 per cent each) for the next three months. If you have 100 employees in your establishment and 90 percent of them earn less than Rs 15,000 per month. This will benefit you financially and will also maintain continuity of employees on your payroll. Please make sure to pay salaries to all employees and file ECR on time to avail this facility.
Meaning of government condition
For institutions which have at least 100 employees and 90 percent of the employees’ salary is less than Rs 15,000, then you can get the benefit of this decision of the government. For the next three months, your contribution of 12 percent going from your salary and the contribution of 12 percent employee will be given by the government.
When did the government take this decision?
On March 26, the central government announced the amount of both the employer and employee’s share in the Employees Provident Fund accounts for the next three months. Finance Minister Nirmala Sitharaman said on this day that the government will deposit the contribution of provident funds from both the employer and the employees of these institutions for the next three months to provide relief to small units. Under this scheme, the government will deposit the contribution of the provident fund’s share of both employer and employee in EPF accounts for three months.
Nearly 8 million employees – 4 lakh units in the organized sector benefit
It is believed that this decision of the government will benefit 4 lakh organized sector units and its employees will get the benefit of not putting money in the provident fund. It is believed that about 80 lakh employees of the country will get the benefit of this step of the government.
What is the rule of PF contribution?
According to the rules, the contribution of Employee and Employer in Employee Provident Fund accounts is equal to 12-12 per cent of salary. A part of this goes to the pension account of the employee.