ESIC & EPF RELIEF SCHEME GUIDELINES 2020 DUE TO COVID19

ESIC & EPF RELIEF SCHEME GUIDELINES 2020 DUE TO COVID19

Pradhan Mantri Garib Kalyan Yojana: A Scheme to implement the PMGKY package for credit of employee’s & employer’s share of EPF & EPS contributions (24% of wages) for three months by Govt. of India.

• Overview:

The Govt. of India on 26.03.2020 relief package under Pradhan Mantri Garib Kalyan Yojana (PMGKY) and the Central Govt. proposes to pay 24 % of the monthly wages into EPF accounts for next three months of Wage-earners below Rupees 15,000/- per month, who are employed in establishments having up to one hundred employees, with 90% or more of such employees earning monthly wages less than Rs.15000/-

• Validity of Scheme: The Scheme will be in operation for the wage months- March, 2020, April, 2020 and May, 2020.

• Scheme Objectives

• To support establishments employing up to one 100 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 100 employees, with 90% or more of such employees earning less than Rs.15,000/- monthly wages.

• Definitions for the Scheme

The definitions mentioned in various sub-sections of section 2 of The Employees’ Provident Fund & Misc. Provisions Act, 1952 and Para 2 of the Employees’ Provident Funds Scheme, 1952, would be applicable mutatis mutandis to this scheme as well.

• Eligibility for Scheme benefits:

ESIC & EPF RELIEF SCHEME GUIDELINES 2020 DUE TO COVID19

• Modalities for implementation of the Scheme

• 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.

• Monitoring Mechanism

• 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.

• Third Party evaluation

• 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.

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You May Also Refer:

FAQS EPF & EPS Contributions relief to low wage earning employees

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