Reduction of EPF Contribution

The Union Finance Minister  has announced that the Employee Provident Fund Contribution of Employer and Employees will being reduced from 12% to 10%, In order to provide more take-home salary for employees and to give relief to employers in payment of EPF Contribution dues, for businesses and workers for three months, amounting to liquidity support of Rs 6750 crore.

• However the Central Public Sector and State Public Sectors will continue to 12% as an employer contribution

• For the next 3 months statutory EPF contributions of both Employee & Employer will be reduced to 10% each from existing 12% for all establishments covered by EPF

• The Scheme will be applicable for the employees who are not eligible for 24%  EPF contribution support of Pradhan Mantri Garib Kalyan Yojana (PMGKY) package and its extension.

EPF Withdrawal under Covid-19

Employee Provident Fund Organization has released a new circulation on 28.03.2020 in concordance of pandemic Covid-19.

The employees working in establishments and factories across entire India, who are members of the EPF Scheme, 1952, are eligible for the benefits of non-refundable advance under the sub-para (3) of Para 68L which has come into force from 28.03.2020.

  

under this provision  an employee can apply for the non refundable advance through the online portal by selecting the  purpose as "Outbreak of pandemic (COVID-19)" through  his login credentials  

 Eligibility:

1. UAN should be activated.

 2. Verified Aadhaar should be linked with UAN 

3. Bank Account with IFSC code should be seeded with UAN  

Eligible Amount:

Employee can claim 75% of his 3 months of  PF Wages or  total EPF contribution amount of Employee share-12% & Employer Share -3.67%  (not included EPS- 8.33% Contribution) which is less.

Source from: Employee Provident Fund Organization

EPF Contribution under PMGKY.

Employee Provident Fund Contribution

The Employee Provident Fund Organization has been announced that the EPF contributions of both employer and employee are being contributed by the Govt of India under the scheme of Pradhan Mantri Garib Kalyan Yojana (PMGKY) for the next 3 months (March, April, and May 2020) for the poor to help them fight the battle against Corona Virus Pandemic and lock down. 

The benefit of this scheme has covered the establishments who are employed having up to one hundred employees, with 90% or more of such employees earning monthly wages less than Rs.15000/-  

Their monthly EPF contribution is being paid directly to the respective employees EPF accounts. by the Govt of India.

Source of information from Employees' Provident Fund Organisation, India

Latest Updates in ESIC

ESI Brought new change in Contribution rate w.e.f  1st, July 2019.

ESIC Scheme:

The Employee State Insurance Act of 1948 that provides social security to the  Employees who are working in an Organization enrolling in the ESI (Employee State Insurance)scheme in India.

The scheme provides various  medical care to the Employee and their family members, based on their eligibility criteria which fallows the employee number of working days and his monthly contribution.

Eligibility criteria for Employee in ESI: 

• Any Organization, Factory, Private sector or any Establishment running with or without ad of power or energy (Fuel, electric power etc) where the  no of employees is 10 or more.The employer has to register under ESIC to take employer registration no from the ESIC.

• The Employee who is working in any establishment (as said above) earning his  gross salary equal or less then Rs. 21000/- is the wage limit (earlier  it was equal or less than Rs.15000/- before 1st, January, 2017)

"Average daily wages of the  Employees not exceeding Rs.176 are exempted from  employee contribution".

The fund of the Employee State Insurance will be Contributed by the both Employee and Employer at the specific rate on gross wages of the employee.

Previous ESI Contribution Rate:

• Employer contribution: 4.75% on gross wage

• Employee contribution: 1.75% on gross wage

ESI Contribution Rate w.e.f  01.07.2019

• Employer contribution: 3.25% on gross wage

• Employee contribution: 0.75% on gross wage