The government will pay the employee provident fund (EPF) contribution of both the employer and the employee (12 percent each) for the next three months, Finance Minister Nirmala Sitharaman said on Thursday, 26 March.
This will be applicable to all those establishments having employed up to 100 employees and about 90 percent of whom earn Rs 15,000 per month, she added.
The move will benefit over 4.8 crore employees in the organised sector. The government has also announced a Rs 1.70 lakh crore economic package for a host of beneficiaries in the wake of COVID-19 spread that has crippled economic activity and wages across sectors.
Sitharaman said the PF contribution decision has been taken to ensure that employees' EPF continuity is not lost. This will be applicable to all those establishments having employed up to 100 employees and about 90 percent of which earn Rs 15,000 per month, she added.
The government also announced that the EPFO Scheme regulations will also be amended to allow employees draw up to 75 percent of their non-refundable advance or upto three months of wages, whichever is lower.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)