Government to put more salary in the PF account for three months
The Union Cabinet approved a proposal to extend the scheme for the payment of PF contributions for three months until August.
New Delhi: The Union Cabinet approved a proposal to extend the scheme for the payment of PF contributions for three months until August.
Finance Minister Nirmala Sitharaman had announced the extension of the benefit in May this year under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) amid the Covid-19 pandemic.
"Cabinet has approved the extension of the scheme where the government pays contributions of employees and employers till August," Union Minister Prakash Javadekar said.
Under the Pradhan Mantri Garib Kalyan Package, the payment of 12 per cent of employer and 12 per cent employee contribution was made into EPF accounts.
For the wage months of June, July and August, 2020, the scheme will cover all the establishments having up to 100 employees and 90 per cent of such employees earning less than Rs 15,000 monthly wage.
Javadekar said that the decision has been taken to facilitate more take-home salary for employees and give relief to employers in payment of PF dues.
The government had imposed lockdown on March 25 to fight the deadly Covid-19. The extension of the benefit will provide liquidity relief to 3.67 lakh establishments.