Cabinet approves extension of government support to PF contributions till August

Ravi S Singh
Tribune News Service
New Delhi, July 8

The Union Cabinet on Wednesday approved the proposal to extend the scheme for payment of the employer and employee's PF contribution by three months until August.

"Cabinet has approved the extension of the scheme where government pays contributions of employee and employers till August," Union Minister Prakash Javadekar told reporters after a Cabinet meeting that Prime Minister Narendra Modi chaired. 

Finance Minister Nirmala Sitharaman had announced in May that she was extending the scheme under the Pradhan Mantri Garib Kalyan Yojana by three months, giving relief to 3.67 lakh employers and 72.22 lakh employees.

The contribution comes up to 24 per cent---12 per cent employees’ share and 12 per cent share of employers.

The benefit was provided earlier for salary months of March, April and May 2020. This support is extended by another three months to salary months of June, July and August 2020.

The scheme will cover all the establishments having up to 100 employees, and 90 per cent of such employees earning less than Rs 15,000 monthly wage.

The government will provide Budgetary support of Rs 4800 crore for the year 2020-21 for this purpose.

However, beneficiaries entitled for 12 per cent employers’ contribution for the months of June-August, 2020, under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY) will be excluded to prevent overlapping benefit.

“Due to prolonged lockdown, it was felt that businesses continue to face financial crisis as they get back to work,” the Labour Ministry said.

Javadekar said that the decision has been taken to facilitate more take-home salary for employees and give relief to employers in payment of PF dues.

The central government had imposed lockdown on March 25 to fight the deadly COVID-19. 

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