EPFO specifies the procedure for eligible employers to avail benefit under PMGKY

Apr 15, 2020 | by Avantis RegTech Legal Research Team

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Labour Compliance

The Employees’ Provident Fund Organisation (EPFO), specifies the procedure for availing benefit under Pradhan Mantri Garib Kalyan Yojana (PMGKY).

There is no change in the process of Electronic Challan cum Returns (ECR) filing or in the format. The eligible employers will only have to submit a declaration before filing the ECR. 

 The eligible establishments will be identified on the basis of ECRs by taking into consideration:

1) The contributory member count from September 2019 to February 2020.

2) If the total number of such UANs has been found to be up to 100 and against these UANs the wages of 90% or more is less than 15000/.

 For eligible establishments:

1) ECR filing will not be permitted while submitting a declaration if the establishment has been identified as eligible.

2) Have to declare total number of employees and total number of employees getting wages less than 15000.

3) Benefit will not be applicable if the employees drawing wages less than 15000 is less than 90%.

4) Since the employer may have several branches and excluded employees, he may also disagree with the declaration. In such case also the benefit will not be given.

 Benefit will be given by the system only when:

1) The employer declared up to 100 employees as total number of employees. 

2) The employer has declared such numbers of employees getting less than 15000 wages that the % is 90 or more, and 

3) He agrees with the declaration. Declaration once submitted for a month cannot be edited.

4) The system will do Establishment wise and Universal Account Number (UAN) wise validation.

 Benefits: In rest of the cases the benefit will be given as follows:

1) Members eligible for PMRPY, the benefit will be given from Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) for the employer share. Employee share will come from PMGKY. 

2) Member eligible for only PMGKY, both share benefit will be given from PMGKY.

3) If member is not member of Employees Pension Scheme, the benefit will be given in both shares in EPF. 

4) For exempted establishment the upfront benefit will be against the EPS Share. 

The total amount of subsidy will be reduced in challan and only the reduced amount will have to be paid by the employer. He will have to pay the Employees Deposit Linked Insurance Scheme (EDLI) contribution and Administrative charges and the contributions for non-eligible members.

Benefit will be given, if eligible, only against the First ECR. Once an ECR is uploaded, second ECR will not be considered for benefit. The employers have been asked through the Scheme to file only one ECR for the month.


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