Govt Notifies Cut In EPF Contribution

Labour ministry, notified lower rates of provident fund contribution at 10%, thus increasing the take home salary of 4.3 crore provident fund subscribers and giving relief to 6.5 lakh establishments. The existing rate of contribution by both employee and employer is 12%. The reduction in PF rates for three months as part of the government's Rs 20 lakh crore stimulus package, will infuse Rs 6,750 crore liquidity into the system. That would be applicable on May-June-July salary period. This would be applicable to all establishments covered under the Employees Provident Fund Organisation including the exempted establishments. However, government which is the employer in the case of the central public sector enterprises and state public sector will continue to pay 12% as its share. Even establishments covered under the earlier announced Rs 1.7 lakh crore Pradhan Mantri Garib Kalyan Yojana will not be covered under the said notification.