The Union government will foot the Employees’ Provident Fund (EPF) bills of companies hiring up to 100 workers for the next three months and allow all the formal sector workers subscribed to the EPFO to withdraw their three months’ PF contribu- tion during the COVID-19 pandemic.
This is part of the Centre’s %1.70-trillion Pradhan Mantri Garib Kalyan (PMGK) package announced by Finance Minister Nirmala Sitharaman on Thursday to provide relief to formal sector workers to help them tide over the national lockdown.
Employers and employees equally contribute 12 per cent of wage towards a worker’s provident fund account maintained with the Employees’ Provident Fund Organisation (EPFO). The move to finance PF contributions will, however, leave behind a majority of workers who received such social security cover in the formal sector. In fact, it will cover only about 16 per cent of EPF subscribers and 1.6 per cent of the total workforce of 471 million.
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March 27, 2020