NEW DELHI : As a temporary relief measure to increase in-hand salary during the coronavirus crisis, finance minister Nirmala Sitharaman has reduced the employees' provident fund (EPF) contribution by 4% for three months.
Employees of around 6.5 lakh companies will benefit with liquidity of around ₹2,250 crore every month. According to the rule, employees and employers deposit 24% -- 12% each of basic salary and dearness allowance (DA) -- as EPF deductions every month for the retirement kitty maintained by the Employees' Provident Fund Organisation (EPFO).
Now, the statutory deduction has been cut by a total of 4% (2% of employer's contribution and 2% of employee's contribution).