Latest Government Scheme PF Contribution: Ahead of Diwali 2020, Finance Minister Nirmala Sitharaman announced another set of stimulus packages for the economy on Thursday. Atma Nirbhar Bharat Rojgar Yojana is one such new proposal to bring in more individuals into the organized sector. The benefits will be for all organizations registered with the EPFO.
New employees recruited by such companies will be those who have either lost their job between March 1 and September 30 or those who didn’t have the Employee Provident Fund (EPF) number earlier. This is the latest government scheme for a contribution towards PF account of employees.
The Central government will provide a subsidy for 2 years to organisations with an employee strength up to 1000 employees or less. The subsidy will be in the form of total contribution being made by the Central government. This means, 12 per cent of the employee’s contribution and 12 per cent of the employer’s contribution will be borne by the Central government.
If any organization’s employee strength is more than 1000 employees, the Central government will contribute only the employees’ contribution.
Such a benefit will be provided to only those employees with wages less than 15000 per month. The subsidy in the form of PF contributions will be directly credited into the Aadhaar-seeded PF account of the employee.
This scheme will be effective from October 1, 2020, for a period of two years. (Financial Express)