Understanding EPF Changes During COVID: How Was Employer Contribution Split Between EPS and EPF?

Dear Members,

During the COVID lockdown, when a few reliefs were announced by the Government of India, there was an announcement regarding EPF that the contribution by both the employee and employer would be reduced to 10% from 12% for the period of three months, i.e., May, June, and July.

Breakdown of Employer Contribution to EPS and EPF

My question is, how was the contribution of the employer broken down into EPS and EPF?

ATMANIRBHAR BHARAT ROJGAR YOJNA Subsidy Support

As per the press conference of Finance Minister Nirmala Sitharaman on the 12th of November 2020, there was an announcement on the ATMANIRBHAR BHARAT ROJGAR YOJNA subsidy support by the central government. The Central Government will provide a subsidy on EPF contributions for two years in respect of new eligible employees employed after the 1st of October 2020 in the following scale:

1. Establishments employing up to 1000 employees
2. Establishments employing more than 1000 employees

My question is whether the count of employees is the overall strength of an establishment or if it is the number that will be hired after the 1st of October 2020?

Simply a 2% benefit to the employer and employee was the spirit of the past months and was available to the establishments that submitted the challan and paid it within the due date.

Atmanirbhar 3 Notification

The Atmanirbhar 3 notification is not yet published by EPFO, but soon it will be clear, subject to certain conditions:

1) The gross salary of a new employee should not exceed 15,000/- per month.
2) The new employee is either a fresher or has been unemployed due to the pandemic.
3) The base manpower of the establishment would be counted until September 2020, and
a) At least 2 or more fresh eligible employees are required to get the benefit of the scheme for establishments below 50 employees.
b) At least 5 or more for establishments above 50 but below 1000.

Let the official gazette get published for a clearer picture.