1. INTRODUCTION
As a part of the 'Atmanirbhar Bharat
Package', the Government of India has announced a
reduction in provident fund contribution rates for a period of 3
months. With a view to provide relief to employers and increase the
take-home salary for employees, both employer and employee
contribution rates have been reduced from 12% to 10% for the months
of May, June, and July of 2020.
2. AMENDMENT
In terms of its powers under Section 6 of the Employees
Provident Fund and Miscellaneous Provisions Act, 1952 (the
"EPF Act"), the Ministry of Labour and Employment has,
through a notification1, added the following entry to Schedule II
of the EPF Act:
"(v) Any establishment, other than Central Public
Sector Enterprises and State Public Sector Enterprises and other
establishments owned by, or under the control of the Central
Government or the State Government, as the case may be, in respect
of wages payable by it for the months of May, June and July
2020.
