[Important: Statutory Update] - PF contribution is rolled back!

Ask the Community Statutory Compliance
1

Starting from Aug’20 payroll, the Employee & Employer PF contribution is rolled back to the old rate of 12%

​Dear Customer,

As we all know, the Covid-19 pandemic pushed the Indian economy into a significant financial crisis. To battle against the pandemic, the Ministry of Labour and Employment came up with many relaxation measures. One of the crucial measures was to provide an option to reduce PF contribution to 10% for employees and employers.

The statutory PF relaxation period provided was only for the short term, and this was only applicable until July month. Consequently, we have disabled this, and the relaxation percentage provided to PF will not be effective from Aug 2020. The statutory PF contribution is now reverted back to the original percentage of 12% for employer and employee.

Regards,
Chethan

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Thanks @Chethanbn

To all those who are processing your payroll in few more days, please note this!

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Adding on to @Chethanbn post-

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