In this post, we will see on the new Gazette notification issued on May 18th, 2020 due to the Covid-19.
The Central government made certain amendments regarding EPF contribution rates in the new official notification.
Ministry of Labour published a notification in Gazette of India, Extraordinary, Part II, section 3, subsection (2) vide number S.O 320(E) dated 9th April 1997.
The following will be inserted into the notification in SCHEDULE II after clause (IV):
“Any establishment other than Central Public Sector Enterprises and State Public Sector Enterprises and other establishments owned by/under the control of Central Government /the State Government, as the case may be, in respect of wages payable by it for the months of May, June and July 2020.”
Note: This will not be applicable to the establishments eligible for relief under Pradhan Mantri Garib Kalyan Yojana guidelines issued by the EPFO vide its Office Memorandum.
|Account head||Rates till April 2020||From May 2020 to July 2020|
|Employee’s PF contribution||12%||10%|
|Employer’s PF contribution||3.67% (12%-8.33%)||1.67% (12%-8.33%)|
|Employer’s EPS contribution||8.33%||8.33%|
|Administrative charges||0.5% (min Rs.500)||0.5% (min Rs.500)|
- Statutory EPF contribution of private sector employers and employees is reduced from 12% to 10%. In other words, the PF rate is reduced to 10%.
- The new amendment is applicable only for the next 3 months – May, June, and July 2020.
- For government PSUs, the employers’ contribution is 12% but for PSU employees it is 10%.
With that, we have come to the end of this post. Share your queries with us in our comment section.