Union Minister Prakash Javadekar  |  Photo Credit: PTI
- About 72.22 lakh workers working in 3.67 lakh establishments will be benefit from the extension, the govt said
- Scheme covers all the establishments having upto 100 employees and 90% of such employees earning less than Rs 15,000 monthly wage for three months
New Delhi: The Union Cabinet, on Wednesday, approved extending the contribution both 12% employees’ share and 12% employers’ share under Employees Provident Fund (EPF), totalling 24% for another 3 months from June to August.
Union Minister Prakash Javadekar announced a spate of measures as part of the package announced by the government under Pradhan Mantri Garib Kalyan Yojana (PMGKY).
For the wage months of June, July and August, the scheme will cover all the establishments having upto 100 employees and 90% of such employees earning less than Rs 15,000 monthly wage.
About 72.22 lakh workers working in 3.67 lakh establishments will be benefited and would likely to continue on their payrolls despite disruptions. The government will provide a budgetary allocation of Rs 4,800 crore for the financial year 2021 for this purpose.
The beneficiaries entitled for 12% employers’ contribution for the months of June to August under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY) will be excluded to prevent overlapping benefit.
Due to prolonged lockdown, it was felt that businesses continue to face a financial crisis as they get back to work. Therefore, FM Nirmala Sitharaman, as part of Aatmanirbhar Bharat, announced on May 15 that the EPF support for business and workers will be extended by another 3 months viz. for the wage months of June, July, and August, 2020.
Javadekar, also announced the 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.
The step was first announced by PM Narendra Modi on June 30 In view of the need for continuous support to the poor and needy.
So far, about 74.3 crore beneficiaries have been covered in April, 74.75 crore in May and about 64.72 crore in June 2020 under the scheme.
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 Cabinet also approved capital infusion of Rs 12,450 crore for three Public Sector General Insurance Companies – Oriental Insurance Company Ltd, National Insurance Company Ltd & United India Insurance Company Ltd (including Rs 2500 cr infused in FY 2019-20), Javadekar added.