To help the citizens with their job losses, the government is planning to extend the PF(Provident Fund) benefits for more companies. As part of this new relief package, the government is extending the PF benefit and take up employee and employer’s PF contribution at firms with more than 100 employees. This would be an addition to the PF benefit which was already announced by the Financial Minister to relieve the economy due to Covid-19.
Initially, it was announced that the central government will bear the entire PF contribution for the employees who are earning up to Rs.15000 or less and working in companies with 100 or fewer employees, for the duration of 3 months. The total help would cost the government an approximate of Rs.4800 crore.
Now it is announced that this benefit would be extended to companies with more than 100 employees as well. Currently, the government is comparing the two scenarios wherein either to do away with the PF cap completely or increase gradually to include companies that have more than 100 employees.
The PF monthly contribution is 24% of an employee’s basic salary. Out of that half will be contributed by the employees’ salary and the other half would be contributed by the employer.
This new benefit could help people save their jobs in their companies. But practically, we have to wait and see the overall benefits of this package in saving the jobs of people