Finance Minister Nirmala Sitharaman Announces PF Benefits: 5 Things To Know

13 May 2020, 05:34 PM IST

PF deduction has been reduced from 12% to 10%

This measure will be applicable for the next three months, Ms Sitharaman added.
All establishments under the Employees' Provident Fund Organisation (EPFO) will enjoy the benefits of this scheme, Ms Sitharaman said.
However, state and central governments will continue to pay 12 per cent towards PF contribution, even as those employed by them will enjoy the benefit of paying 10 per cent only.
Besides, the government also extended, for further three months, the PF-related benefit for smaller firms, which had been announced under the Pradhan Mantri Garib Kalyan Yojana in March.
Under that scheme, it was announced that establishments with up to 100 employees, 90 per cent of whom, earn less than Rs 15,000 a month, will not have to pay the PF contribution, as it will be covered by the government. Moreover, the employees' contribution was also waived off.