In view of the subject mentioned Orders shared with you today, In case you wish to avail services for liasoning with the Concerned authority for getting your organisation permission to operate, Please register your interest with us by responding to this email with the details location of your establishment that you wish to start operations.
In Line with the MHA, Find enclosed Notification issued by Andhra Pradesh State Government.
The reduction in statutory rate of contributions from 12% to 10% for wage months May, 2020, June, 2020 and July, 2020 for all class of establishments covered under the EPF & MP Act, 1952 announced on 13.05.2020 by the Central Govt. as part of Atma-NirbharBharat package has been notified vide SO 1513 (E) dated 18.05.2020 published in the Gazette of India. The notification is available under the TAB- COVID-19 on the home page of EPFO website and circular from Regional Office Chennai is enclosed for clarification.
The reduced rate is also not applicable for PMGKY beneficiaries, since the entire employees EPF contributions (12% of wages) and employers’ EPF & EPS contribution (12% of wages), totalling 24% of the monthly wages is being contributed by the Central Govt.
As a result of reduction in statutory rate of contributions from 12% to 10%, the employee shall have a higher take home pay due to reduction in deduction from his pay on account of EPF contributions and employer shall also have his liability reduced by 2% of wages of his employees. If Rs.10000/- is monthly EPF wages, only Rs.1000/- instead of Rs.1200/- is deducted from employee’s wages and employer pays Rs.1000/-instead of Rs.1200/- towards EPF contributions.
In Cost to Company (CTC) model, if Rs.10000/- is monthly EPF wages, in CTC Model the employee gets Rs.200/- more directly from employer as employer’s EPF/EPS contribution is reduced and Rs.200/- less is deducted from his/her wages.
Under the EPF Scheme, 1952 any member has theoption to contribute at a rate higher than statutory rate (10%) and employer can restrict his contributions @ 10% (statutory rate) in respect of such employee.
Wef: 1st July it is compulsory to seed Bank details and Mobile no’s of all employees covered under ESI on the portal.
Request you to kindly collate the date and provide us by this month end to avoid any administrative inconvenience at the time of remittance of ESI Contributions.
