Wednesday, May 13, 2020

EPF Contribution reduced and Take home increase

EPF Contribution reduced and Take home increase  India's Finance Minister Nirmala Sitharaman has eased down the contribution an employee and employer makes towards provident fund account amid Covid-19 crisis.

It is important to provide more take-home salary to employees and also to give relief to employers in payment of provident fund account. It will allow more take home for employees and less burden on employers 

What it means:

The statutory contribution of both employees and employers to 10% each from the existing 12% for all establishments covered by EPFO

The FM highlights that, such will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3cr such employees.

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