Finance Minister Nirmala Sitharaman announced that the government will pay the EPF contribution both of the employer and the employee (12% each) for the next three months. The good news is applicable for establishments with up to 100 employees, where 90% of employees drawing less than Rs 15,000 salary.
“This is for all those establishments that have up to 100 employees and 90 percent of whom earn under Rs 15,000 per month,” the FM said.
Also, the govt amended EPFO regulations to allow workers under EPFO to draw up to 75% of their non-refundable advance or 3 months of wages, whichever is lower. “This will benefit 4.8 crore workers who are registered with the EPF,” she added.
In order to deal with the current situations amid nationwide lockdown, the government unveiled a Rs 1.70 lakh crore economic package involving free foodgrain and cooking gas to poor for the next three months, one-time doles to women and poor senior citizens, higher wages to workers and measures to boost liquidity of employees.
Earlier this week, the Finance Minister had announced a slew of measures to deal with the economic distress that include extension of tax deadlines, easing minimum balance norms for savings account, and increasing threshold of insolvency filing to Rs1 crore from Rs1 lakh.
The Prime Minister had announced an Economic Task Force to be chaired by the finance minister.
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