FINANCE MINISTER ANNOUNCES LIQUIDITY MEASURES FOR EMPLOYERS
On May 13, 2020, India’s Finance Minister announced some liquidity measures for employers :
- The relief announced by the government in March, under which the government agreed to pay provident fund (social security) contributions on behalf of both, the employer and the employee, for establishments where 90% of the staff receives a salary below INR15,000 per month has been extended until August 2020.
- For establishments who are not eligible for the foregoing relief, the rate of contribution to the provident fund has been reduced from 12% to 10% for both, the employer and the employee, for the next 3 months.
Although many industry sectors were hoping for some sort of a cash dole, something is better than nothing.