The Govt. of India on 26.03.2020 announced Rs.1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana (PMGKY) for the poor to help them fight the battle against Corona Virus Pandemic. To prevent disruption in the employment of low wage earning employees and support establishments employing up to one hundred employees, the entire employees EPF contributions and employers’ EPF & EPS contribution of the monthly wages for the next three months shall be directly paid by the Central Govt. in the EPF accounts (UAN) of employees, who are already members of EPF Scheme, 1952, drawing wages less than Rs.15000/- per month and employed in establishments, already covered under the EPF & MP Act, 1952, employing up to one hundred employees, with 90% or more of such employees earning less than Rs.15,000/- monthly wages.
The Scheme will be in operation for the wage months- March, 2020, April, 2020 and May, 2020;
The total number of employees employed in the establishment should be up to 100 (one hundred), with 90% or more of such employees should be drawing monthly wages less than Rs.15000/-.;
The establishment or factory should already be covered and registered under the Employees’ Provident Funds & Misc. Provisions Act, 1952;
Employee should be a member of EPF Scheme, 1952 & Employees’ Pension Scheme, 1995 whose contributions are received for any period during last six months (September 2019 to February 2020) in the ECR filed by any eligible establishment against his/her UAN;
Employee is already a registered beneficiary under PMRPY/PMPRPY 2016, no benefit with r/o such employee shall be available under this Scheme of PMGKY.
Return under the Scheme for availing benefits
The employer in relation to any eligible establishment, shall disburse wages for the month to all employees of the establishment and file Electronic Challan cum Return (ECR) Online to avail the benefit under the Scheme;
Since the Central Govt. is paying the employee’s share of EPF contributions for employees eligible under this Scheme, for the wage months March, 2020, April, 2020, and May, 2020, the employer shall not make any deduction of employee’s share of EPF contributions from the monthly wages of any eligible employee drawn for the wage months- March 2020, April 2020 and May 2020;
The employer of establishment claiming benefits under this Scheme have to file only one valid ECR for each of the months- March, 2020, April, 2020 and May, 2020;
That Form 5A (Ownership return) filed electronically should contain the details of all branches/departments and EPF Code numbers, if any, allotted separately to such branches/departments;
Once ECR is uploaded by an employer eligible for relief, then the challan will separately show such amounts of employees’ and employers’ contributions as Central Govt. relief due under this Scheme in respect of eligible employees and the remaining amount payable by the employer-contributions towards EDLI Scheme, 1976 and EPF administrative charges in respect of all employees as well as EPF & EPS contributions due in respect of ineligible employees.
After the employer remits the payment due from him as reflected in challan, the EPF & EPS contributions in respect of eligible employees will be credited directly in their respective UAN by the Central Govt. There is no need to seek reimbursement of relief.
At the time of submission of the ECR, the employer shall be required to certify correctness of information furnished electronically in ECR and in Form 5A with an undertaking that the employer is liable for penal and coercive consequence for submitting any incorrect or false information/declaration to avail the relief.
The entire employees EPF contributions (12% of wages) and employers’ EPF & EPS contribution (12% of wages), totalling 24% of the monthly wages for the next three months shall be directly paid by the Central Govt. in the EPF accounts (UAN) of employees, who are already members of EPF Scheme, 1952, drawing wages less than Rs.15000/- per month and employed in establishments, already covered under the EPF & MP Act, 1952;
This will benefit about 80 lakh employees and incentivize about 4 lakhs establishments to continue their employees on their payrolls despite disruption;
of India to spend around 5000/- crore for this purpose.
EPFO shall develop a software for implementing this Scheme and also develop a procedure which is transparent and accountable at their own end;
EPFO shall credit the funds in the Aadhaar seeded accounts of members of EPF in electronic manner;
EPFO shall put in place a robust mechanism to monitor the implementation of the Scheme on a daily basis;
EPFO shall provide weekly reports to the Ministry of Labour & Employment (Directorate General of Employment), Govt. of India for effective monitoring of the Scheme;
EPFO shall undertake Third Party Evaluation of the Scheme within a period of three months from the closure of the Scheme and send a report to the Ministry of labour & Employment, Govt. of India;
The expenditure incurred towards evaluation of the Scheme shall be borne by the EPFO out of its own resources.
CERTIFICATE/ DECLARATION OF EMPLOYER
“I hereby certify that the information relating to the names of employees who are members of the EPF Scheme, 1952 and/or EPS’ 1995, UANs seeded with Aadhaar of employees, EPF/EPS wages already disbursed to employees, number of excluded employees in the ECR for wage month of March/April/May, 2020 are true and correct.
That I have disclosed names & UANs seeded with Aadhaar of every employee employed in all units/branches/departments as well as number of excluded employees of my establishment in the ECR for wage month of March/April/May, 2020, the total number of employees being ____ (EPF members and excluded employees), out of which _____employees earned EPF/EPS wages less than Rs.15000/- qualifying for Central Govt. relief. I further certify that the Form 5A contains the details of all branches/departments and EPF Code numbers allotted separately to these.
I also certify that monthly wages due to all employees for the month of March/April/May, 2020 has been disbursed and also certify that no deductions towards either employees’ EPF contributions or employers’ EPF/EPS contributions have been made from wages of eligible employees for the month of March/April/May, 2020.
That I have neither suppressed any material information nor omitted any particulars and submitted correct information to avail the relief of employer’s and employees’ share of contributions in r/o eligible employees from the Central Govt. for the month of March/April/May, 2020.
I understand that the employer is liable to refund the relief amount and is also liable for any penal and coercive consequence for submitting any incorrect or false information/declaration to avail the Central Govt. relief.”
The entire contents of this article are solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation by the Author. Compliance Calendar LLP and the Author of this Article do not constitute any sort of professional advice or a formal recommendation. The author has undertaken utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify and confirm the updates from the genuine sources before acting on any of the information’s provided hereinabove. Compliance Calendar LLP shall not be responsible for any loss or damage in any circumstances whatsoever.