PF contribution reduced from 12% to 10% for 3 months
Addressing a press conference on Wednesday, Sitharaman said the statutory PF contribution of both employers and employees will be reduced from 12% to 10% for all establishments covered by the Employees' Provident Fund Organisation (EPFO) for the next three months.
However, Central Public Sector Enterprises (CPSEs) and state public sector undertakings (PSUs) will continue to pay 12% as the employer's contribution.
Sitharaman said, "Under the Pradhan Mantri Garib Kalyan Package, payment of 12% of employer and employee contributions was made into EPF accounts of eligible establishments. This was provided for March, April, and May 2020."
She added, "This support will be extended for June, July, and August. This will provide liquidity relief of Rs. 2,500 crore to 3.67 lakh establishments and 72.22 lakh employees."