In This video We will covers topics about EPF 24% Relief under PMGKY due to lockdown. What will we discuss?
1. Announcement?
2. Scheme Objectives?
3. Validity of Scheme?
4. Eligibility of Employer & Employee?
5. Instruction to avail benefit?
6. Certificate Filed by Employer?
7. Lots of Questions & Answers?
Let’s discuss!
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 (12% of wages) and employers’ EPF & EPS contribution (12% of wages), totaling 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, 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.
Eligibility for Scheme benefits:
A. For Establishments: To be eligible for benefits, following conditions should be fulfilled:
(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 Rs.15000/-.
B. For Employees:
(i) Employee should be employed in any eligible establishment earning monthly wages of less than Rs.15000/-. The UAN of the employee should be seeded with his/her Aadhaar.
(ii) 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.
Such contributions in ECR should have been received on monthly wage of less than
Rs.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 r/o such employee shall be available under this Scheme of PMGKY.
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) 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.
(iv) 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.
(v) 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.
(vi) 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 eligibl e employees will be credited directly in their respective UAN by the Central Govt. There is no need to seek reimbursement of relief.
(vii) 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 form of Certificate/declaration of employer is appended below:
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