EPFO Alert: How employers can avail 24 pct PF contribution by Narendra Modi govt under PMGKY

EPFO Alert: In a much needed relief the Narendra Modi Government had on 26 March announced that it will pay the Employees' Provident Fund (EPF) contribution for both the employer and the employee (12% each) for the next three months

Under the PM Gareeb Kalyan Yojana (PMGKY) package the Central government is contributing 24 per cent of salary of employees working in companies with up to 100 workers. Source: Reuters

EPFO Alert: In a much needed relief the Narendra Modi Government had on 26 March announced that it will pay the Employees' Provident Fund (EPF) contribution for both the employer and the employee (12% each) for the next three months. The Ministry of Labour and Employment has already notified the special scheme for 24% contribution to PF accounts of employees earning less than Rs 15,000 to deal with the nationwide lockdown because of the coronavirus pandemic.

Under the PM Gareeb Kalyan Yojana (PMGKY) package the Central government is contributing 24 per cent of salary of employees working in companies with up to 100 workers.

The scheme is valid for the wage months of March 2020, April 2020 and May 2020.

TRENDING NOW

How can eligible establishments claim a relief:

The eligible companies can now make a claim by filing Electronic Challan-cum-return (ECR). Visit the website link to log in.

The due amount on behalf of Employers and Employees reflected in the ECR on account of EPF and EPS will be credited by the government for three months in UANs (Universal Account Number) of contributory EPF account holders.

Around 79 lakh subscribers and approximately 3.8 lakh establishments are expected to benefit from the package.

Instructions for availing benefits under the Scheme: Refer to this EPFO circular for detailed instructions

-- 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.

-- 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.

-- 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.

-- 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

-- 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.

See Zee Business Live TV Streaming Below:

-- 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.

TAGS:

EPFO Personal Finance