In a major announcement for both employees as well as employers, Finance Minister Nirmala Sitharaman on Wednesday announced that the government will continue to contribute towards Employees' Provident Fund (EPF) on behalf of select businesses for another three months. “To ease financial stress as businesses get back to work, Government decides to continue EPF Support for Business & Workers for 3 more months providing a liquidity relief of Rs 2,500 crore,” the finance minister said, while addressing media on Wednesday.
The government said that Iin order to provide more take home salary for employees and to give relief to employers in payment of PF, EPF contribution is being reduced for Businesses & Workers for 3 months, amounting to a liquidity support of Rs 6750 crores. Union Finance Minister Nirmala Sitharaman on Wednesday announced Rs 3 lakh crore collateral-free automatic loans for businesses, including MSMEs. Besides this, Sitharaman stated that to provide stressed MSMEs with equity support, the government will facilitate the provision of Rs. 20,000 crore as subordinate debt.