What is the objective of this Scheme?

To prevent disruption in the employment of weaker section employees and support establishments employing up to one hundred employees, the entire employees EPF contributions (12% of wages) and employers’ EPF & EPS contribution (12% of wages), total 24% of the monthly wages for the next three months (March 2020, April 2020 & May 2020) 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 total ₹ 15000/- per month and employed in establishments, already covered under the EPF & MP Act, 1952, employing up to 100 employees, with 90% or more of such employees earning less than ₹ 15,000/- total monthly wages.

What is the eligibility for Scheme benefits For Establishments?

For any establishment to be eligible for benefits, must fulfill these two conditions:

(i) The establishment or factory should already be covered and registered under the Employees’ Provident Funds & Misc. Provisions Act, 1952.

(ii) 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 ₹15000/-.

Validity of PMGKY Scheme (i.e. EPF & EPS Contributions relief Scheme)

The Scheme will be Valid in operation for the wage months- March 2020, April 2020 and May 2020.

What is eligibility for Scheme benefits For Employees?

(i) Employee should be employed in any eligible establishment under this scheme and earning monthly wages of less than ₹ 15000/-. Their UAN should be seeded with his/her Aadhaar Card.

(ii) An employee should be a member of EPF Scheme, 1952 & EPS Scheme 1995, whose contributions are received for any period during the last six Wages months (September 2019 to February 2020) in the ECR filed by any eligible establishment against their UAN.
Such contributions in ECR should have been received on a monthly wage of less than ₹15000/-

(iii) It is clarified that if any employee is already a registered beneficiary and his/her employer is availing benefits of payment of employer’s share by Central Govt. under PMRPY/PMPRPY 2016, no such benefit in respect of such employee shall be available under this Scheme of Pradhan Mantri Garib Kalyan

Instructions for availing benefits under the Scheme:

(i) 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.

(ii) 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.

(iii) 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.

(iv) 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 only eligible employees and the remaining amount incur 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.

(v) After the employer remits the payment due from him as reflected in challan as noted at (v) above, 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.

Is the employer required to file separate ECR for the eligible employees or ineligible employees?

The employer of establishment claiming benefits under this Scheme have to file only one valid ECR (for both eligible & ineligible employee) for each of the months- March, 2020, April, 2020 and May, 2020.

Is any undertaking is required by employer?

Yes, undertaking is required by the employer in the form of CERTIFICATE/ DECLARATION OF EMPLOYER.

Yes, EPFO will send communication in employer’s login to all such establishments who are eligible for the Pradhan Mantri Garib Kalyan Scheme 2020.