EPFO puts in place mechanism to credit govt's share to EPF, EPS under PMGKY

Employees' Provident Fund Organisation (EPFO) has put in place a mechanism to credit employers' and employees' contributions towards its social security schemes by the government under the PM Garib Kalyan Yojana amid the lockdown to contain Covid-19.

The move would benefit around 7.9 million subscribers and 380,000 firms with a total outgo of Rs 4,800 crore from the government.

"EPFO has put in place an electronic mechanism for crediting EPF and EPS accounts of its subscribers as per the package announced by the Union Government under PM Gareeb Kalyan Yojna on March 26, 2020, for helping the poor to fight Corona pandemic," a labour ministry statement said.

Accordingly, the relief announced by the government can be claimed by eligible organisations/ establishments by filing electronic challan-cum-return (ECR).

The due amount on behalf of employers and employees reflected in the ECR on account of EPF and EPS (24 per cent wages) will be credited by the central government for three months in UANs (universal account number) of contributory EPF members. The scheme will only be applicable to those earning a monthly wage of less than Rs 15,000, are already employed in EPF covered establishments/ factories, employing up to one hundred employees with 90 per cent or more of such employees earning a monthly wage of less than Rs 15,000.

Around 79 lakh subscribers and approximately 3.8 lakh establishments are expected to benefit from the package. This is estimated to have a subsidy outgo of Rs 4,800 crore in a period of three months.

The central government had launched the Pradhan Mantri Garib Kalyan Yojana (PMGKY) on March 26, 2020 to help poor fight the battle against Corona Virus pandemic.

The PMGKY package is aimed at preventing disruption in the employment of low wage-earning EPF members and extending support to the eligible EPF covered establishments.

To implement the package, the Ministry of Labour and Employment had subsequently notified the scheme - specifying the objective, eligibility criteria, validity period, process and manner to avail the relief.

Electronic challan-cum-return (ECR) filing will enable the establishments to avail the relief in respect of their eligible employees.

The employer in relation to any eligible establishment, will disburse wages for the month to all employees of the establishment and file electronic challan-cum-return (ECR) with required certificate and declaration to avail the benefit under the scheme.

After ECR is uploaded and eligibility of establishment and employees is validated, then the challan will separately show the amount of employees' and employers' contributions due as the central government relief in respect of eligible employees and the remaining amount payable by the employer.

After the employer remits the payment due from him for other employees, as reflected in the challan, the EPF and EPS contributions will be credited directly in the UANs of employees of the establishment by the central government.

The details of the scheme and FAQs containing clarifications on various aspects of the package are available on the EPFO website.