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EPF contribution for private sector cut to 10 pc for three months

EPF contribution for private sector cut to 10 pc for three months
EPF contribution for private sector cut to 10 pc for three months

The government has reduced the statutory Employees Provident Fund (EPF) contribution of private-sector employers and employees from the current mandated 12 percent to 10 percent for the next three months.
The liquidity relief is being given for all EPF establishments. The government support in the form of 12 percent employer and 12 percent employee contribution to eligible establishments has also been extended for another three months: June, July, and August.
The support was earlier offered till the end of May. However, for public sector units, it will remain 12 percent but PSU employees can pay 10 percent.
This will reduce the total contribution to an employee’s EPF corpus.
The fresh liquidity support amounts to Rs 2,500 crore and will be beneficial for over 70 lakh employees, said Finance Minister Nirmala Sitharaman on Wednesday.