The government of India is trying its best to support citizens in these tough times of lockdown. Amongst a series of benevolent steps taken by the government, now employee’s contribution towards PF will not be deducted from their salary for the next three months, provided the employers to fulfill certain conditions. Similar steps have been taken up by the government to help and support those who are below the poverty line, and daily wagers. Like, early withdrawal of funds from APY has been permitted, advance pension for three months also has been allowed to help elderly and widows.
The government of India, in its latest notification, said that it will pay a 12% contribution towards EPF, on behalf of both employee and the employer. The only condition which the government has set is that the company should have more than 100 employees and that 90% of its employees should draw less than Rs. 15,000 salary. The employers are required to pay salaries to their employees in time and also, they regularly should file the ECR. If a company satisfies these conditions, then the government will pay the required 12% contribution of both the employees and the employers for the next three months.
It is believed that this step of the government will help about 4 lakh small scale companies in the organized sector. Also, this concession will help more than 80 lakh employees working with such companies. The direct benefit of this concession is that employee’s in-hand salary will increase for the next three months.