FREQUENTLY ASKED QUESTIONS ON CENTRAL GOVT. RELIEF FOR EMPLOYEES’ AND EMPLOYERS’ CONTRIBUTION FOR THREE MONTHS TO LOW WAGE EARNING EPF MEMBERS EMPLOYED IN ESTABLISHMENTS WITH EMPLOYMENT STRENGTH UPTO ONE HUNDRED
Q1: What is the objective of this Scheme?
Ans: The Central Govt. announced Pradhan
Mantri Garib Kayan Yojana Package to help the poor fight the COVID-19 pandemic.
As part of this package, with the objective to prevent disruption in the
employment of low wage earning employees and support businesses employing less
than one hundred employees, the Central Govt. has decided to pay 24 % of the
monthly wages into their EPF accounts for three months.
Q2: What are the effective months
during which this Scheme is being implemented?
Ans: This Scheme will be valid for
wage months- March, 2020, April, 2020 and May 2020.
Q3: Which are the establishments
eligible for getting the benefit of contributions from Central Govt.?
Ans: For any establishment to be
eligible for benefits,
Q4: Are all employees of eligible
establishment eligible for the Central Govt. relief under this Scheme?
Ans: For an employee to be eligible
for benefits,
Q 5: Whether an employee, earning
less than Rs.15000/- employed in an eligible estt who is no longer a member of
EPS, 1995 due his attaining age of 58 years but is a member of EPF Scheme, 1952
eligible for relief under this Scheme?
Ans: EPF members who are not EPS
members due to completion of 58 years shall be eligible provided other
conditions are fulfilled and the contribution from Central Govt. will be
credited to his EPF account.
Q6: Can you illustrate the
verification of eligibility of an EPF covered establishment for benefit under
this Scheme?
Ans: If an establishment already
covered under the EPF & MP Act, 1952 has remitted contributions in respect
of fifty employees for the month of February, 2020, through ECR and on
verification of ECR, it is found that for 46 employees (92% of 50 employees),
the contributions are paid on wages less than Rs.15000/-, the establishment is
eligible.
Q7. What is the quantum of Central
Govt. relief under this Scheme?
Ans: The entire employee’s EPF
contributions (12% of wages) and employer’s EPF & EPS contribution (12% of
wages), totalling 24% of the monthly wages for the next three months shall be
directly paid by the Central Govt. in the EPF accounts (UAN) of eligible
employees in employed in eligible establishments.
Q8: Whether employee is defined
for the purpose of this Scheme?
Ans: The definition of employee as
contained in sec 2(f) of the EPF & MP Act, 1952 as well as other
definitions in EPF & MP Act, 1952 are mutatis mutandis applicable to this
Scheme.
Q9: Who will be considered as
contributory member for determining eligibility?
Q10: How an eligible employee is
benefitted by this Scheme?
Ans: The monthly employee’s EPF
contributions @ 12% of monthly wage which is deducted from wage of the employee
is now to be paid by the Central Govt. in the EPF account of the eligible
employee. So there will be no deduction from wages of eligible employee so
he/she will have a higher take home salary.
Q11: How an employer of eligible
establishment is benefitted by this Scheme?
Ans: Employer of eligible
establishment is not required to pay his share of EPF & EPS contributions
@12% of monthly wage of eligible employees of his establishment and so employer
saves this money. This is an incentive to employers of small business to retain
all his employees and pay them wages.
Q12: Can you illustrate the
monetary benefit to an Employee & Employer under this Scheme?
Ans: If an eligible employee draws
a monthly wage of Rs.10000/-, Rs.1200/- which was to be paid into EPF by
deduction from his monthly wage will now be paid by the Central Govt.
Q13: So, Central Govt. will bear
the entire liability under the EPF & MP Act, 1952 for eligible
establishments?
Ans: The Central Govt. shall bear
the entire liability towards the EPF & EPS contributions of the eligible
employees in eligible establishment. The employer of eligible estts, shall
continue to pay the EDLI contributions and EPF administrative charges for all
employees as well as the EPF & EPS contributions for ineligible employees.
Q 14: Whether this scheme is
applicable to employees in exempted establishment?
Ans: Yes, provided that the
establishment meets the eligibility conditions as mentioned in Answer to Q3
Ans: Online
e-KYC facility is available to member on EPFO Portal as well on UMANG mobile
App to self-validate their UAN with Aadhaar without any intervention by
Employer. This is in addition to Online Aadhaar validation in member’s UAN by
employer.
Q 16: Whether the EPFO will
communicate with the employers of the establishments found eligible from ECRs
of month prior to March 2020?
Ans: Yes, EPFO will send
communication in employer’s login to all such establishments for payment of
wages to employees and filing of ECR. However, the eligibility will be
validated on filing of ECR by employers for the wage months- March, 2020, April
2020 and May, 2020 and also with reference to information furnished in Form 5A.
Q 17: How the benefits can be
applied for and who has to apply, employer or employee?
Ans: The employer in relation to
any eligible establishment, is required to disburse salary/wages for the month
to all employees of the establishment, without deducting EPF contributions from
wages of eligible employees and file Electronic Challan cum Return (ECR) for
the month to claim benefit under this Scheme.
Q 19: Is the employer required to
file any other information other than ECR?
Ans: The Form 5A (Ownership
return) should contain particulars of all branches and departments of the
establishment and also code numbers, if any, taken for administrative convenience
for the branches. The employer can update Form 5A online using his approved
Digital Signature Certificate (DSC).
Q 20: Whether the contributions
amount has to be initially paid by the establishment and thereafter reimbursed
by Central Govt.?
Ans: Once
ECR is uploaded by an employer of eligible establishment, 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.
Q 21: What is the responsibility
of employer for availing the benefits?
Ans: The employer must ensure to
file correct information, statement or declaration for total number of
employees, disbursement of wages, amount of wages in the ECR and full details
of establishment in Form 5A. The employer is required to file a
certificate/declaration in the format prescribed under 6 (vii) of the Scheme at
the time of ECR submission.
If it is discovered that the
information furnished or declaration made electronically in ECR or Form 5A or
otherwise are false/incorrect, then the employer will be liable to refund the
relief and also face the penal consequences for such contravention under the
EPF & MP Act, 1952.
Ans: The Central Govt. announced Pradhan
Mantri Garib Kayan Yojana Package to help the poor fight the COVID-19 pandemic.
As part of this package, with the objective to prevent disruption in the
employment of low wage earning employees and support businesses employing less
than one hundred employees, the Central Govt. has decided to pay 24 % of the
monthly wages into their EPF accounts for three months.
To implement the package, the
Ministry of Labour, Govt. of India has approved Scheme guidelines.
Q2: What are the effective months
during which this Scheme is being implemented?
Ans: This Scheme will be valid for
wage months- March, 2020, April, 2020 and May 2020.
Q3: Which are the establishments
eligible for getting the benefit of contributions from Central Govt.?
Ans: For any establishment to be
eligible for benefits,
(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/-.
Q4: Are all employees of eligible
establishment eligible for the Central Govt. relief under this Scheme?
Ans: For an employee to be eligible
for benefits,
(i) Employee should be employed in
any eligible establishment earning monthly wages of less than Rs.15000/- and
his UAN 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 (wage 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/-.
Q 5: Whether an employee, earning
less than Rs.15000/- employed in an eligible estt who is no longer a member of
EPS, 1995 due his attaining age of 58 years but is a member of EPF Scheme, 1952
eligible for relief under this Scheme?
Ans: EPF members who are not EPS
members due to completion of 58 years shall be eligible provided other
conditions are fulfilled and the contribution from Central Govt. will be
credited to his EPF account.
Q6: Can you illustrate the
verification of eligibility of an EPF covered establishment for benefit under
this Scheme?
Ans: If an establishment already
covered under the EPF & MP Act, 1952 has remitted contributions in respect
of fifty employees for the month of February, 2020, through ECR and on
verification of ECR, it is found that for 46 employees (92% of 50 employees),
the contributions are paid on wages less than Rs.15000/-, the establishment is
eligible.
All the 46 employees earning wages
less than Rs.15000/- are eligible for benefit.
If the above situation of total
employees up to 100 and 90% or more of employees earning monthly wage of less
than Rs.15000/- prevails in wage month of March, 2020, April, 2020 and May
2020, the establishment is eligible for benefit under this Scheme.
Q7. What is the quantum of Central
Govt. relief under this Scheme?
Ans: The entire employee’s EPF
contributions (12% of wages) and employer’s EPF & EPS contribution (12% of
wages), totalling 24% of the monthly wages for the next three months shall be
directly paid by the Central Govt. in the EPF accounts (UAN) of eligible
employees in employed in eligible establishments.
Q8: Whether employee is defined
for the purpose of this Scheme?
Ans: The definition of employee as
contained in sec 2(f) of the EPF & MP Act, 1952 as well as other
definitions in EPF & MP Act, 1952 are mutatis mutandis applicable to this
Scheme.
Q9: Who will be considered as
contributory member for determining eligibility?
Ans: Employee, employed in
eligible establishment, should be a contributory member of EPF Scheme, 1952
& Employees’ Pension Scheme, 1995, whose contributions are received against
his/her UAN for any period during last six months (wage months-September 2019
to February 2020) in the ECR filed by any eligible establishment.
Q10: How an eligible employee is
benefitted by this Scheme?
Ans: The monthly employee’s EPF
contributions @ 12% of monthly wage which is deducted from wage of the employee
is now to be paid by the Central Govt. in the EPF account of the eligible
employee. So there will be no deduction from wages of eligible employee so
he/she will have a higher take home salary.
Since the employer is also
supported for employer’s share by the Govt., it prevents loss of employment of
low wage earners and ensures payment of wages to employees.
Q11: How an employer of eligible
establishment is benefitted by this Scheme?
Ans: Employer of eligible
establishment is not required to pay his share of EPF & EPS contributions
@12% of monthly wage of eligible employees of his establishment and so employer
saves this money. This is an incentive to employers of small business to retain
all his employees and pay them wages.
Q12: Can you illustrate the
monetary benefit to an Employee & Employer under this Scheme?
Ans: If an eligible employee draws
a monthly wage of Rs.10000/-, Rs.1200/- which was to be paid into EPF by
deduction from his monthly wage will now be paid by the Central Govt.
Further, in the above case, the
employer is also not required to incur expenditure of Rs.1200/- from his
finances as the Central Govt. pays the same.
Q13: So, Central Govt. will bear
the entire liability under the EPF & MP Act, 1952 for eligible
establishments?
Ans: The Central Govt. shall bear
the entire liability towards the EPF & EPS contributions of the eligible
employees in eligible establishment. The employer of eligible estts, shall
continue to pay the EDLI contributions and EPF administrative charges for all
employees as well as the EPF & EPS contributions for ineligible employees.
Q 14: Whether this scheme is
applicable to employees in exempted establishment?
Ans: Yes, provided that the
establishment meets the eligibility conditions as mentioned in Answer to Q3
Q 15: If the UAN is not seeded
with Aadhaar, how the validation/seeding is possible in lockdown period?
Ans: Online
e-KYC facility is available to member on EPFO Portal as well on UMANG mobile
App to self-validate their UAN with Aadhaar without any intervention by
Employer. This is in addition to Online Aadhaar validation in member’s UAN by
employer.
Since the validation is Online,
seeding of Aadhaar in UAN can be completed now also.
Q 16: Whether the EPFO will
communicate with the employers of the establishments found eligible from ECRs
of month prior to March 2020?
Ans: Yes, EPFO will send
communication in employer’s login to all such establishments for payment of
wages to employees and filing of ECR. However, the eligibility will be
validated on filing of ECR by employers for the wage months- March, 2020, April
2020 and May, 2020 and also with reference to information furnished in Form 5A.
Q 17: How the benefits can be
applied for and who has to apply, employer or employee?
Ans: The employer in relation to
any eligible establishment, is required to disburse salary/wages for the month
to all employees of the establishment, without deducting EPF contributions from
wages of eligible employees and file Electronic Challan cum Return (ECR) for
the month to claim benefit under this Scheme.
Q 18: Is the employer required to
file separate ECR for the eligible employees?
Ans: Each eligible establishment
has to file only one valid ECR for each of three months in respect of
its total employees both eligible as well as ineligible employees.
Q 19: Is the employer required to
file any other information other than ECR?
Ans: The Form 5A (Ownership
return) should contain particulars of all branches and departments of the
establishment and also code numbers, if any, taken for administrative convenience
for the branches. The employer can update Form 5A online using his approved
Digital Signature Certificate (DSC).
Q 20: Whether the contributions
amount has to be initially paid by the establishment and thereafter reimbursed
by Central Govt.?
Ans: Once
ECR is uploaded by an employer of eligible establishment, 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.
After the employer remits the
payment due from him as reflected in challan as noted above, the EPF & EPS
contributions in respect of eligible employees will be credited directly in
their respective UAN by the Central Govt.
Q 21: What is the responsibility
of employer for availing the benefits?
Ans: The employer must ensure to
file correct information, statement or declaration for total number of
employees, disbursement of wages, amount of wages in the ECR and full details
of establishment in Form 5A. The employer is required to file a
certificate/declaration in the format prescribed under 6 (vii) of the Scheme at
the time of ECR submission.
If it is discovered that the
information furnished or declaration made electronically in ECR or Form 5A or
otherwise are false/incorrect, then the employer will be liable to refund the
relief and also face the penal consequences for such contravention under the
EPF & MP Act, 1952.
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