EPFO notifies a Scheme to implement the Pradhan Mantri Garib Kalyan Yojana

Apr 15, 2020 | by Avantis RegTech Legal Research Team

A |  A

Labour Compliance

The Employees’ Provident Fund Organisation (EPFO) on April 09, 2020, notifies a Scheme to implement the Pradhan Mantri Garib Kalyan Yojana (PMGKY) package for credit of employee’s & employer’s share of EPF & EPS contributions (24% of wages) for three months.

As per PMGKY Package proposes to pay 24 percent of the monthly wages into EPF accounts for next three months of Wage-earners below Rupees fifteen thousand 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/-.

 Scheme Objectives:

1) To prevent disruption in the employment of low wage earning employees and support establishments employing up to one hundred employees, where entire contributions of employers and employees (24%) of the monthly wages for the next three months will be directly paid by the Central Government as per PMGKY Package.

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

 Eligibility for Scheme benefits:

1) Establishments to be eligible for benefits, following conditions should be fulfilled:

a) Should be covered under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952.

b) 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/-.

2) Employees:

a) Employee should be employed in any eligible establishment earning monthly wages of less than Rs.15000/-.

b) Employee should be a member of EPF Scheme, 1952 & Employees’ Pension Scheme, 1995. Contributions in ECR should have been received on monthly wage of less than Rs.15000/-

c) 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 Government under other Scheme, then no such benefit will be available under to employee under this Scheme of PMGKY.

Further, Scheme specifies the instructions for availing benefits, Modalities for implementation of the Scheme, Monitoring Mechanism and Third Party evaluation.


Bookmark

Related Updates



Alternate Text

Get updates on the go on RuleZbook Mobile App.