Cabinet Approves Extension Of PF Contributions By Government Till August

The Union Cabinet on Wednesday accepted the proposal to increase the scheme for cost of the employer and worker’s Provident Fund (PF) contribution for 3 months till August. Finance Minister Nirmala Sitharaman had introduced the extension of the profit in May this 12 months. “Cabinet has approved the extension of the scheme where government pays contributions of employee and employers till August,” Union Minister Prakash Javadekar informed reporters after the Cabinet assembly on Wednesday.

Ms Sitharaman in May had introduced the extension of the scheme below the Pradhan Mantri Garib Kalyan Yojana for 3 months until August, the place the federal government would contribute whole 24 per cent of PF contributions until August, giving aid to three.67 lakh employers and 72.22 lakh staff. Mr Javadekar mentioned that the choice has been taken to facilitate extra take-home wage for workers and provides aid to employers in cost of PF dues.

The authorities had imposed lockdown on March 25 to battle the lethal COVID-19. Under the Pradhan Mantri Garib Kalyan Package, the cost of 12 per cent of employer and 12 per cent worker contribution was made into EPF accounts.

The profit was offered earlier for wage months of March, April and May 2020. This help is prolonged by one other three months to wage months of June, July and August 2020. The extension of the profit will present a liquidity aid to three.67 lakh institutions. The authorities is of the view that companies want help to ramp up manufacturing over the following quarter (July-September).

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