Govt to contribute to EPF only for new employees registered till Mar 31, 2019

The Ministry of Labor and employment has now made certain amendments to the guidelines of Pradhan Mantri Rojgar ProtsahanYojana (PMRPY). As per the new amendments, if a new employee wants to gain from the scheme, then they need to get themselves registered with a company that is covered under EPFO and the last date for the same is March 31, 2019. It is already requested to the field officers to make this amendments effective immediately as per the memorandum issued by the government.

The memo also states that the Indian Government of lndia will now pay employer’s contribution of EPF and EPS starting 1st April 2018 for a timespan of three years. This is applicable to the new employees as well as existing members for their pending time span of three years. This implies that the Government of India will now contribute for the full admissible contribution from the employer’s side for the initial three years from the date of registration of the new employee. Furthermore, the government has also covered the employees who have joined their organization on or after 1st April 2016, and they have a Universal Account Number plus a minimum salary band of up to Rs 15,000 per month.

This move will specially be beneficial for the employees who are already tapping the profit of the 8.33 per cent of contribution towards pension, as it will be modified to 12 per cent for the left timespan in the initial three years. This would also help those who are working in the informal sector.

If you look at it, this initiative by the government has a dual benefit. Employees will surely be happy and the employers also can incentivize their current resources and also can increase the employment opportunities for people.

This was announced by the Finance Minister in his speech for budget 2018. For more details visit here: https://www.epfouanguide.com/