Finance Minister Nirmala Sitharaman made two major announcements regarding Employees' Provident Fund Organisation (EPFO).
She had said that the government has decided to relax the Employee Provident Fund (EPF) withdrawal rules so that employees will have easy access to money.
The Finance Minister had also announced that the government will pay the EPF contribution - 24 per cent - of both the employer and employee for the next three months. This is for those establishments which have over 100 employees, 90 percent of whom earn below Rs 15,000 per month.
According to the announcement, EPFO will now allow withdrawal of 75 per cent of credit in the EPF account or three months of wages, whichever is lower.
"These changes will come into effect from April 1, 2020," said Sitharaman.
These measures were announced in the Rs 1.7 lakh crore Gareeb Kalyan package announced by Nirmala Sitharaman in her press meet.