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Lower PF contribution not mandatory; EPFO clarifies on CTC, pension of employee

India covid-19 Government crisis
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The government notified the new rules on lower contribution towards the employees’ provident fund (EPF) by employer and employee for the next three months on 18 May.

The Employees’ Provident Fund Organization (EPFO) came out with detailed FAQs (frequently asked questions) on 20 May to provide clarity on the statutory reduction on PF contributions.

As per the FAQs, the lower contribution is not mandatory for both the employer and the employee. Apart from this, EPFO has also clarified that those employers who are following the cost-to-company (CTC) model will have to compensate their employees by paying an amount equivalent to 2% contribution if they are opting for a reduced contribution of 10% instead of 12%.

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
Cases: 34 321 025
Deaths: 459 652
Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
Recovered: 0
United Kingdom
United Kingdom
Cases: 9 215 683
Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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