The government has reduced statutory Employees Provident Fund (EPF) contribution of private-sector employers and employees from current mandated 12 per cent to 10 per cent for the next three months.
The liquidity relief is being given for all EPF establishments. The government support in the form of 12 per cent employer and 12 per cent employee contribution to eligible establishments has also been extended for another three months: June, July and August.
The support was earlier offered till the end of May. However, for public sector units, it will remain 12 per cent but PSU employees can pay 10 per cent.
This will reduce the total contribution to an employee's EPF corpus.
The fresh liquidity support amounts to Rs 2,500 crore and will be beneficial for over 70 lakh employees, said Finance Minister Nirmala Sitharaman on Wednesday.
( With inputs from ANI )