Commencement of implementation of the decision to reduce the amount of EPF contribution from 12 per cent to 10 per cent

(PTI) New delhi date. 13

The Ministry of Labor and Employment has started implementing the decision to reduce the EPF contribution from 15 per cent to 10 per cent. The decision will be implemented in three months, May, June and July.

The decision will lead to an increase in the net salaries of 4.5 crore employees in the organized sector. The decision will increase cash flow by Rs 50 crore in the next three months.

The notification issued by the Ministry of Labor states that the decision to reduce the EPF contribution will be implemented for May, June and July salaries. This means that the net salary that will come in handy in June, July and August will increase.

Last week, Finance Minister Nirmala Sitaram announced an reduction in the EPF contribution from 12 per cent to 10 per cent of basic salary. However, the EPF contribution of employees of Central Public Sector Enterprise (CPSE) and Public Sector Undertaking (PSU) will be reduced by 12 per cent as before.

The benefit of reduction in EPF contribution will be available only to those employees who are not availing the benefit of 5% EPF assistance under the PM Poor Welfare Package.