EPFO Contribution Payment Due Date Extended For The Month Of March 2020
Due to Corona's impact, multi-crore companies across India have lost business and revenue and created severe financial hardship. In this backdrop, the central government has extended the payment period of PA payments in the name of employees. It is noteworthy that this extension will enable several thousand companies to get around Rs. This announcement by the central government has no effect on the employees.
Extension of time
The Central Government has announced that companies can now pay their employees a PF account every month for a period of 30 days. The EFFO said that it would provide more funding to businesses. With this fund, companies can pay off their trade debt properly. The announcement seems to have been made with this in mind.
24 percent of the amount
Companies pay 24% of the employee's base salary and HRA in a PF account. Of these, 12 percent will be employee share and 12 percent will be company share. Companies are now required to pay the amount for the month of March on April 15, with a 30-day deadline.
Each month, the EPFO system receives about Rs 12,000 to Rs 12,500 crore in employee accounts. This fund is going to be in the hands of companies for the next 30 days. The purpose of this announcement is to help companies run the fund well. Beyond this, these relaxations also mean that companies are able to pay their employees fully.
30 day extension
The 30-day extension announced by the central government is due to be extended till next month. This will definitely help companies recover from their financial crisis, ”the EPFO system official said.
Find the EPFO circular below