The Union Cabinet on July 8, 2020 has given its approval for extending the contribution both 12% employees’ share and 12% employers’ share under Employees Provident Fund, totaling 24% for another 3 months from June to August, 2020.
It has been extended as part of the package announced by the Government of India under Pradhan Mantri Garib Kalyan Yojana (PMGKY)/ Aatmanirbhar Bharat in the light of COVID-19, a Pandemic.
This approval is in addition to the existing scheme for the wage months of March to May, 2020 approved on 15.04.2020. The total estimated expenditure is of Rs.4,860 crore. Over 72 lakh employees in 3.67 lakh establishments will be benefitted.
Salient Features
For the wage months of June, July and August, 2020, the scheme will cover all the establishments having upto 100 employees and 90% of such employees earning less than Rs. 15,000 monthly wage.
About 72.22 lakh workers working in 3.67 lakh establishments will be benefited and would likely to continue on their payrolls despite disruptions.
Government will provide Budgetary Support of Rs.4800 crore for the year 2020-21 for this purpose.
The beneficiaries entitled for 12% employers’ contribution for the months of June to August, 2020 under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY) will be excluded to prevent overlapping benefit.
