On move of The Government of India announcement regarding reduce EPF contribution rate from 12% to 10%, labour ministry notified the rates of EPF contribution at 10% vide Gazette notification No. 1352 dated May 18, 2020. By Gazetted notification the Central government make amendment in the notification number S.O. 320(E) dated 9th April 1997 and inserted clause (v) in SCHEDULE II.
Clause “(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”.
Rate of contribution 10% (earlier 8.33%) applicable to the establishment falls under SCHEDULE II as prescribed in the notification number S.O. 320(E) dated 9th April 1997. Following industries/establishment comes under SCHEDULE II
– Jute Industry
– Beedi Industry
– Brick Industry
– Coir Industry other than the spinning Sector
– Gaur gum Factories.
– Company employing less than 20 employees (Voluntary registered)
– Sick Industry – permitted by the EPFO
By the amendment Central Government inserted clause (v) in SCHEDULE II, which allow to all establishment/industry covered by EPFO to deposit statutory PF contribution of both employee and employer on reduced rate of 10% each from existing 12% for next 3 months. It is not applicable/allow to Central Public Sector Enterprises and State Public Sector Enterprises, other establishments owned by, or under the control of the Central Government and establishment availing benefit under PMGKY.