new Delhi: Finance Minister Nirmala Sitharaman today announced that the PF of the employees getting salary of more than 15 thousand will be given by the government for the next three months, giving details of the economic package of 20 lakh crore rupees on behalf of Prime Minister Narendra Modi. Nirmala Sitaraman said that the government will bear the contribution of 12-12 per cent, ie 24 per cent of the total contribution by the company and employees to the EPFO account of the employees in the next three months. This will be applicable to the employees who get a salary of up to 15 thousand rupees in an institution with less than 100 employees.
Earlier, the government had announced relief in EPF contribution for three months under the PM Garib Kalyan Yojana package of 1 lakh 70 thousand crore. But at that time this exemption was only for the months of March, April and May. But today the Finance Minister has announced in the press conference to extend it for the next three months. This will benefit 72 lakh employees of 3 lakh 67 thousand units. This will benefit 2500 crores.
Sitaraman announced a loan of three lakhs without guarantee for MSMEs and said the MSME definition would be changed. The scope of the investment limit will be expanded, business based criteria will be introduced. He said that a one-year moratorium will be given to repay the loan if given to MSMEs, a Rs 20,000 crore (without guarantee) loan will be given to pressurized MSMEs, benefitting 2 lakh MSMEs.
With this, the share of PF deduction of both the employee and the company will be reduced from 12 per cent to 10 per cent. These deductions will remain in force for 3 months. Although the PSU will not get this exemption, the deduction will remain 12 percent for them, although their share of employees will be reduced.
This post was published on May 14, 2020 2:38 am
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