Central Govt. To Take Care of EPF Contributions for Two Years

Finance Minister Ms Nirmala Sitharaman had held a press conference on 28 June 2021 to announce the economic reliefs for the pandemic-affected sectors. In addition, the minister has stated the extension of the PF relief registration deadline for the fresh recruits and re-hires. The deadline is extended from 30 June 2021 to 31 March 2022.

The relief scheme was initially announced as part of the Aatmanirbhar Bharat Rozgaar Yojana. It focuses on fresh recruits and re-hires and provides a higher in-hand salary where the Central Government takes care of the EPF contributions for two years. 

Employees who have landed a job after being laid off after 1 March 2020 due to the pandemic are also eligible for the scheme.

The Central Government has committed to taking care of the EPF contributions of employees and employers (12% + 12%) for two years from the date of registration. This benefit will be restricted to employees with a monthly salary of up to Rs.15,000. The relief is available to those employed after 1 October 2020 and those who were laid off after 1 March 2020 and got hired after 1 October 2020.

The government will take care of the employee and employer EPF contributions for companies with up to 1,000 employees. For companies with 1,000+ employees, the government will sponsor only the employees’ contributions. The amount will be credited to the Aadhaar-seeded employees’ EPF accounts as ‘subsidy support’. 

The scheme provides more money at hand for those who have just landed their first jobs and have a lower package on the whole. This is to help families have some more cash at hand to manage the necessary expenses. It’d be great if the beneficiaries can use the extra money wisely.

For any clarifications/feedback on the topic, please contact the writer at apoorva.n@cleartax.in