Reductions of the rate of employees’ and employers’ contributions to Employees Provident Funds (EPF): Clarification

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Reductions of the rate of employees’ and employers’ contributions to Employees Provident Funds (EPF): Clarification

Government intends to mandate reductions of the rate of employees’ and employers’ contributions to Employees Provident Funds (EPF) GOVERNMENT OF INDI

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Government intends to mandate reductions of the rate of employees’ and employers’ contributions to Employees Provident Funds (EPF)

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT

RAJYA SABHA

UNSTARRED QUESTION NO. 268

TO BE ANSWERED ON 03.02.2021

EMPLOYEES’ AND EMPLOYERS’ CONTRIBUTIONS TO EPF

268. SHRI MAHESH PODDAR:
Will the Minister of Labour and Employment be pleased to state:

(a) whether it is a fact that Government intends to mandate reductions in employees’ and employers’ contributions to Employees Provident Funds (EPF);

(b) if so, whether percentage contributed by employees and employers will reduce by the same amount and from when it is expected;

(c) for how long does Government intend to keep the reduction in place; and

(d) whether Government will take any steps to ensure that employers do not unduly reduce their contributions under the garb of this proposed move?

Rate of Interest @8.50% for the Employees’ Provident Fund Members Account for the year 2019-20:  EPFO

ANSWER

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI SANTOSH KUMAR GANGWAR)

(a) to (d): There is no proposal for reduction of the rate of contributions under section 6 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. However, due to Covid-19 pandemic and to provide liquidity in the hands of the employers and employees, statutory rate of contributions was reduced from 12% of wages to 10% of wages for three wage months from May, 2020 to July, 2020, as specified vide notification number S.O. 1513(E) dated the 18th May, 2020.

reductions-of-the-rate-of-employees-and-employers-contributions-to-employees-provident-funds-epf-clarification

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