Corporate Compliance 15 September 2026
EPF Scheme 2026: Possible 3‑Month Contribution Cut Explained
During the 2020 Covid‑19 lockdown, the government cut the statutory EPF contribution rate for three months to ease employer cash flow. Under EPF Scheme 2026, contributions keep earning interest, but the short‑term cut could shrink retirement savings, so workers should watch their balances.
The EPF Scheme 2026 allows a temporary three‑month reduction in employee and employer contributions, a measure first used during the 2020 Covid‑19 crisis.
- Why it was introduced: To relieve cash‑flow pressure on businesses during the pandemic.
- Impact on savers: Contributions still earn statutory interest, but lower deposits mean slower growth of retirement funds.
- What to do: Keep track of your EPF balance and plan for the shortfall once normal contributions resume.
For full details, read the Business Standard article.
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