The reduction of mandatory employer and employee FNPF contributions to 5 per cent will be extended through December 31, 2021.

Minister for Economy Aiyaz Sayed-Khaiyum said all employers who go beyond the call of duty and contribute more than 5 per cent up to 10 per cent, would be given a generous 150 per cent tax deduction backdated to April 1, 2020.

He said this additional contribution would be exempt from taxes for employees.

“To further incentivise employers to go that extra mile for their employees, we’re making fringe benefits offered by employers tax exempt,” Mr Sayed-Khaiyum said.