Recently, the government has announced a three months extension from June to August 2020 in contribution to Provident Fund by employer and employee both, it shall be a total of 24%. The rule is applicable to establishments employing up to 100 employees and 90% of which shall be earning less than Rs. 15,000. This relief was announced as part of the package announced under the Pradhan Mantri Gareeb Kalyan Yojana (PMGKY) and the total expenditure on the scheme shall be Rs. 4,860 crore.
The salient features of this announcement are:

It aims to benefit 72.22 lakh workers working in 3.67 establishments and would likely to continue on their payroll despite so many disruptions. Those entitled to 12% employers’ contribution for the month of June to August 2020 under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY) shall not be given the benefit of this scheme to prevent overlapping of benefits.

The government is also planning to provide Budgetary Support of Rs. 4800 crore for the year 2020-21 for this purpose. The government has taken some great steps to help the people recover from crisis going on due to the pandemic COVID-19 and we can still expect some more relief from it.