EPF Contribution Reduced For Business And Workers
In order to provide more take-home salary, statutory provident fund contribution for employees not covered in the earlier announcement will be lowered for both employees and employers to 10 percent from 12 percent, Sitharaman said. This will continue to be 12 percent for government firms. Government employees will pay 10 percent.
In addition the government has extended the EPF support of up to Rs 2,500 crore for another three months. Under the PM Garib Kalyan Yojana, payment of 12 percent of employer and 12 percent employee contribution was made into the EPF accounts of eligible establishments. This support was offered till May. Now the same is being extended for June, July and August.
Pradeep Aggarwal, Founder & Chairman –Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development elaborated, “The relief provided to the common man under EPF will help the affordable segment a great deal. The buyers of affordable fall in this category and they will be elated to get extra money at their disposal. Covid-19 situation has made everyone realise the importance of making safe investments and having a roof on one’s head. With extra disposable income, these beneficiaries of the announcement made by the FM will go for buying real estate assets.”