How do I opt for the 10% PF rate deduction rate as declared by the government?
The government via a notification dated May 18’ 2020 has notified the cut in EPF contribution of employees and employers to 10% from the existing 12% for the months of May, June, and July 2020 for those establishment covered under EPFO Act. The move will reduce the total contribution of an employee’s EPF corpus. However, the plus point is that this reduction in the employee’s contribution from 12% to 10% may increase the take-home of the employee for the next 3 months and the same will be benefited to the employer by a reduction in establishment contribution. The object of change in the PF rate is due to the Covid-19 pandemic, lockdown is in force across the country and the Central Government after making the necessary inquiry is satisfied that there is a need to provide cash-in-hands of employees and employers.
The EPF 10% reduced rate is Optional for an establishment. So if the company wants they can go with 10% reduced rate.
To update your preference please follow the steps listed below:
- Log into your Quikchex Admin Account and go to Organization >> Company Profile
- In the Basic Information table scroll down to the question “Do you wish to opt in for 10% PF deduction benefit (This is active from May - July 2020 only)?”
- To change the value click on the Edit button on the top of the table.
Note: This setting will be disabled after July 2020 unless extended by the government
For more details please refer the following blog article: