Covid-19 PF Relief Component
Covid-19 pandemic pushed the economy into a major financial crisis. The Central Government has come up with several relaxation measures to ensure cash liquidity with the employers and employees. The Ministry of Labour and Employment published a notification dated 18th May 2020 to provide relief for PF by allowing employee and employer to reduce their PF contribution rate. greytHR is now ready with these changes in the application. You can configure the Covid-19 PF relief component from the Payroll Process and Salary page.
- Will the PF report shows the individual family pension fund and employer's break up in the PF statement?
- Will there be any changes in the PF ECR report?
- Can we set 2% PF as a special allowance instead of creating the new component under gross?
- Is the Reduction allowance component a one-time tax or projected tax?
- Will the system revert back these changes in August?
- How can we assign the PF rate for individual employees?
- How can we generate a PF rate report?
- Can we contribute different PF rates for May, June and July i.e. contribute 12% for May month and contribute 10% for June & July?
- How to configure Covid-19 PF Relief Component?
- Can the employer or employee pay at a higher rate or the contribution rate of 10% is mandatory?
- What will be the rate of contribution for administrative charges and insurance?
- My establishment will not be able to remit dues timely during the scheme period. Is it still eligible for the reduced rate of contribution?
- How will the reduced rate of contribution impact amount of pension in the long run?
- How is benefit availed? One has to pay at full rate and claim reimbursement later, or direct payment at a reduced rate can be made.
- Is the 10% rate of contribution applicable to establishments which get registered with EPFO during wage months May 2020, June 2020, and July 2020?
- I get salary under Cost to Company (CTC) model, will the reduced rate of contributions which is up to 10% still benefit me?
- How does the reduced rate of contributions help the employees and employer?
- Are exempted establishments eligible for the reduced rate of contribution?
- Who are eligible for the reduced rate of contributions?
- What is the period for which the reduced rate of contribution is applicable?
- Is the option to contribute at a reduced rate available to establishments availing PMRPY benefits?
- Whether any notification has been issued under the EPF & MP Act, 1952 for reducing the rate of contributions? If so, how can I access the notification?
- What is the objective of reduction in the rate of contributions?
- What is the revised rate of EPF contribution announced by the Central Government under Atmanirbhar Bharat package?