Government Notifies Cut in EPF Contribution to 10% Three Months till July 2020

The Ministry of Labour & Employment has announced a cut in the rate of employees’ provident fund (EPF) contributions to 10 percent from the existing 12 percent, for three months till July 2020. This means that the new rate would be applicable on May-June-July salary period.
The existing rate of contribution by both employee and employer is 12%.
The decision is estimated to infuse liquidity of Rs 6,750 crore in next three months.
This reduction of the EPF contributions will be applicable for those workers who are not eligible for 24 percent EPF support under PM Garib Kalyan Package and its extension.
However, the Central Public Sector Enterprises (CPSEs) and public sector undertakings (PSUs) will continue to contribute 12 percent.

Points to Remember:

What is the new rate of employees’ provident fund (EPF) contributions for 3 months till July 2020?