Big news for Provident Fund account holders! Govt to pay EPF contribution for 3 months, announces Sitharaman
Finance Minister Nirmala Sitharaman on Thursday announced that the government will pay the entire EPF (Employees' Provident Fund) contribution that is of both of the employer and the employee (12 per cent each) for the next three months in wake of coronavirus outbreak.The total contribution government will pay for 3 months is 24 per cent. Nirmala Sitharaman was announcing the coronavirus economic relief pakage amid the COVID-19 outbreak.
The Finance Minister added, this is for all those establishments who have up to 100 employees and 90 per cent of the employees earn less than Rs 15,000. The EPF scheme regulation will be amended to allow non refundable advance to 75 percent of the amount standing to the credit or 3 months wages whichever is lower. This will benefit 4.8 crore workers.
“Govt of India will pay the Employees' Provident Fund(EPF) contribution, both of employer and employee, put together it will be 24%, this will be for next 3 months.This is for those establishments which have upto 100 employees and 90% of them earn less that 15,000,” the finance minister said.
Sitharaman said that government is also ready to amend the provident fund regulations, allowing the workers to draw upto 75% non-refundable advance from credit in PF account or 3 months salary, whichever is lower.
“Govt ready to amend the regulation of EPF due to this pandemic so that workers can draw upto 75% non-refundable advance from credit in PF account or 3 months salary, whichever is lower,” she said.
Finance Minister Nirmala Sitharaman on Thursday announced 'coronavirus economic relief package' of Rs 1.7 lakh crore. Sitharaman Said: "Govt announces Rs 1.70 lakh crore package under PM Garib Kalyan Yojana. Govt is working for those who are directly affected like migrants, labours, women etc. We are now announcing a package for poor and those who need immediate help. According to her, 80 crore people will benefit from this scheme.
Among others, she announced an insurance cover of Rs 50 lakh per person to frontline health workers - ASHA workers, paramedics, doctors, nurses, sanitary workers - who are putting their lives at risk and treating coronavirus patients.
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