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Govt cuts EPFO contribution to 20% for next three months

Nirmala Sitharaman city New Delhi covid-19 Government crisis
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NEW DELHI: The government on Wednesday announced the reduction in employees provident fund (EPF) statutory deductions for both employers and employees to 20% for the next three months, a move that will benefit around 650,000 companies.

Currently, employees and employers deposit 24%-12% each from their basic salaries and housing allowances as EPF deductions every month.

The decision will help employers lower employee cost and enable 2% more take home pay for employees. This will also provide ₹6,750 crore liquidity support to companies during the covid-19 crisis, finance minister Nirmala Sitharaman said, while announcing measures under the first tranche of the ₹20 trillion economic stimulus package.

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United States
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Cases: 46 252 513
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India
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