EPF calculator 2020: One of the major announcements made by Finance Minister Nirmala Sitharaman as part of her Rs 20 cr economic relief package, was the option to go for a reduced EPF rate. The Ministry of Labour and Employment has notified the reduced rate of provident fund contribution for employers and employees from existing 12 per cent of monthly basic pay and dearness allowance to 10 per cent for the months of May, June and July 2020.
The move will allow salaried employees to take home a bigger salary which, it is believed, will help boost the economy as well as provide greater amounts of money in the hands of cash-strapped individuals during the Covid-19 crisis. The new rule applies to all classes of establishments covered under the Provident Fund Act barring central and state public sector enterprises or any other establishment owned or controlled by or under control of the central government or state government.
Should you opt for reduced EPF?
While the move will provide…