EPF will be 12% each for employee, employer w.e.f. August 1

Under Atma Nirbhar Package, the Employees’ Provident Fund (EPF) contributions of both the employers and employees were reduced to 20 percent from 24 percent for the months of May, June and July 2020.after the announcement by Finance Minister Nirmala Sitharaman on May 8.

During this time, the reduced contribution amount meant that the take home pays of employees would be increased while the employers could make some savings. The move was aimed to offer huge relief to lakhs of employers and lakhs of employees.

With effective from August 1 onwards the EPF contribution will be as normal same as earlier contribution of 24 percent by both employer and employee. The segregation of 24 percent is 12 percent each from the employee and the employer.

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