The Finance Minister, Mrs Nirmala Sitharaman, announced a financial relief package of Rs 1.70 Lakh Crores on 26th March 2020. The packaged focused on poor, daily wage earners, unorganized sector workers etc. who will be facing economic difficulty due to COVID-19 lock-down.
Highlights of the announcement, relevant for the organised sector workers are as under:
- EPF contribution of employee and employer totaling to 24% will be borne by the Government of India of the next three months, for companies where there are more than 100 workers, and more than 90% of the employees are drawing salaries less than Rs 15,000.
- Employee Provident fund regulations will be amended in view of the pandemic to allow workers to draw 75% of the fund standing in their credit or 3 months wages whichever is lower as non-refundable advance. This is expected to benefit 4.8 crore workers.
- Welfare Fund for Building and Other Constructions Workers has been created under a Central Government Act. The Central Government intends to give directions to the State Government to use the fund to support the registered 3.5 crore construction workers facing economic disruption.
- District Mineral fund shall be used for medical testing, diagnosing activities for fighting the COVID-19.
Click here to read the Press Release.
