Good news for EPF subscribers! Government extends relaxations for another three months

In a good news for Employees' Provident Fund Organisation subscribers, the government on Wednesday approved the extension of EPF contribution 24% (12% employees share and 12% employers share) for another three months from June to August 2020 under Pradhan Mantri Garib Kalyan Yojana. With a total estimated expenditure of Rs 4,860 crore, this move will benefit over 72 lakh employees, Union Minister Prakash Javadekar said. 

“Cabinet approves extension of EPF contribution 24% (12% employees share and 12% employers share) for another 3 months from June to August 2020 under Pradhan Mantri Garib Kalyan Yojana/Aatmanirbhar Bharat,” Javadekar said, while addressing media after the Cabinet meet. 

So far, about 74.3 Cr. beneficiaries have been covered in April and 74.75 Cr. beneficiaries have been covered in May and about 64.72 Cr. beneficiaries in June 2020.

He also announced that Cabinet has approved the extension of Pradhan Mantri Garib Kalyan Anna Yojana which pertains to the allocation of additional food rations for further five months from July to November 2020. 

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The Union Cabinet also approved the extension of time limit for availing the benefits of "Pardon Mantri Garib Kalyan Yojana" for Ujjwala beneficiaries by three months with effect from 1st July 2020.  Pradhan Mantri Garib Kalyan Yojana (PMGKY) aims to provide a safety net to the poor and vulnerable who had been hit the hardest by the pandemic.

“The time limit has been extended till September for availing the benefits of the scheme. This move will cost Rs 13,500 crores,” Javadekar added.

The Cabinet has also approved a capital infusion of Rs 12,450 cr for 3 Public Sector General Insurance Companies – Oriental Insurance Company Ltd, National Insurance Company Ltd and United India Insurance Company Ltd (including Rs 2500 cr infused in FY 2019-20.