Ravi S Singh
Tribune News Service
New Delhi, July 8
The Union Cabinet on Wednesday accepted the proposal to increase the scheme for fee of the employer and worker’s PF contribution by three months till August.
“Cabinet has approved the extension of the scheme where government pays contributions of employee and employers till August,” Union Minister Prakash Javadekar advised reporters after a Cabinet assembly that Prime Minister Narendra Modi chaired.
Finance Minister Nirmala Sitharaman had introduced in May that she was extending the scheme underneath the Pradhan Mantri Garib Kalyan Yojana by three months, giving aid to three.67 lakh employers and 72.22 lakh staff.
The contribution comes as much as 24 per cent—12 per cent staff’ share and 12 per cent share of employers.
The profit was supplied earlier for wage months of March, April and May 2020. This assist is prolonged by one other three months to wage months of June, July and August 2020.
The scheme will cowl all of the institutions having as much as 100 staff, and 90 per cent of such staff incomes lower than Rs 15,000 month-to-month wage.
The authorities will present Budgetary assist of Rs 4800 crore for the 12 months 2020-21 for this function.
However, beneficiaries entitled for 12 per cent employers’ contribution for the months of June-August, 2020, underneath Pradhan Mantri Rozgar Protsahan Yojana (PMRPY) will probably be excluded to forestall overlapping profit.
“Due to prolonged lockdown, it was felt that businesses continue to face financial crisis as they get back to work,” the Labour Ministry mentioned.
Javadekar mentioned that the choice has been taken to facilitate extra take-home wage for workers and provides aid to employers in fee of PF dues.
The central authorities had imposed lockdown on March 25 to combat the lethal COVID-19.