6. Contributions and matters which may be provided for in Schemes.-1[***] The contribution which shall be paid by the employer to the Fund shall be 2[3[ten per cent]] of the basic wages, 4[dearness allowance and retaining allowance (if any)] for the time being payable to each of the employees 5[(whether employed by him directly or by or through a contractor)], and the employees' contribution shall be equal to the contribution payable by the employer in respect of him and may, 6[if any employee so desires, be an amount exceeding 3[ten per cent.] of his basic wages, dearness allowance and retaining allowance (if any), subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section]: 6[Provided that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, this section shall be subject to the modification that for the words 7["ten per cent."], at both the places where they occur, the words 7["twelve per cent.'] shall be substituted:] Provided further that where the amount of any contribution payable under this Act involves a fraction of a rupees, the Scheme may provide for the rounding off of such fraction to the nearest rupee, half of a rupee or quarter of a rupee. 8[Explanation 1].-For the purposes of this 9[section], dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee. 10[Explanation 2.-For the purposes of this 11[section], "retaining allowance" means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.] 12[***]
NEW RULES:
1. All the establishments covered under the EPFO including the exempted ones will be part of this ruling. However, the PF rate cut shall not be applicable to:
a) Central public sector enterprises (CPSEs) and state public sector units for whom the employer is the government and they would continue to contribute 12% to employee's EPF account.
b) Also, establishments that form the part of the previously announced Rs 1.7 lakh crore Pradhan Mantri Garib Kalyan Yojana will not be part of the above notification.
2. The move has been announced for a limited time period i.e. for 3 months- I.E , MAY-JUNE-JULY'2020 ONLY
3. The cut in EPF contribution will be applicable to all establishments covered under the Employees' Provident Fund Organisation or EPFO, including the exempted PF trusts.
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