Latest Update

24% of the monthly wages to be credited into the PF accounts for next three months for wage-earners below Rs 15,000 per month in businesses having less than 100 workers. This support will be extended by another 3 months to salary months of June, July and August 2020.

Hello. In this post we will be talking about the Pradhan Mantri Garib Kalyan Yojana. This is a scheme by the Govt. of India to help small establishments and employees.

Here’s what we will be covering:

 

What is Pradhan Mantri Garib Kalyan Yojana (PMGKY)?

It is a scheme in which the employee’s & employer’s share of EPF & EPS contributions (24% of wages) will be contributed by the Govt. of India for three months (March, April and May 2020).

The Govt. of India has announced Rs.1.70 Lakh Crore relief package under PMGKY.

As part of the package, the Central Govt. proposes to pay 24 percent of the monthly wages into EPF accounts for next three months.

Eligibility for the scheme

For establishments:

  1. The establishment should already be covered and registered under the Employees’ Provident Funds & Misc. Provisions Act, 1952.
  2. The total number of employees employed in the establishment should be up to 100 (one hundred).
  3. 90% or more of such employees should be drawing monthly wages less than Rs.15000/-.

For employees:

  1. Employee should be earning monthly wages of less than Rs.15000/-.
  2. Employees’ UAN and Aadhaar should be linked.
  3. Employee should be a member of EPF Scheme, 1952 & Employees’ Pension Scheme, 1995.
  4. Employee should have contributed to the EPF fund in the last 6 months (September 2019 to February 2020).

NOTE: if any employee is already a registered beneficiary and his/her employer is availing benefits of payment of employer’s share by Central Govt. under PMRPY/PMPRPY 2016, no such benefit in r/o such employee shall be available under this Scheme of PMGKY.

Validity of Scheme

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

Process for availing the scheme [by employer]

  1. The employer of eligible establishment has to disburse the wages for all employees.
    • Since the govt. is paying the EPF and EPS contribution, the employer should not make any deduction from the monthly wage payments.
  2. The employer of establishment claiming benefits under this Scheme has to file only one valid ECR for each of the months.
  3. The Form 5A (Ownership return) filed electronically should contain the details of all branches/departments and EPF Code numbers (if applicable).
  4. Once ECR is uploaded by an employer, the challan will separately show contributions by Central Govt. relief and amount payable by the employer.
    • This includes contributions towards EDLI Scheme, EPF administrative charges as well as EPF & EPS contributions due in respect of ineligible employees.
  5. 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.

In the EPFO portal:

1. As soon as you login, you will be shown a pop-up.

PMGKY - Pop-up in ECR portal

2. Navigate to ECR / return filing screen and enter the number of employees who will be eligible for this scheme. Declare your eligibility, click on continue and submit.

PMGKY - enter employee numbers

PMGKY - continue and submit declaration

3. Continue uploading the ECR return, verify and pay (EDLI, EPF admin charges and EPF for ineligible employees) as you normally would. Your challan will have the following break-up:

PMGKY - challan with break-upYour ECR file will have to contain the break-up as given:

PMGKY - ECR file

Error codes for not receiving PMGKY benefits

PMGKY benefit not given remarks:-

Reason Code Reason Name
GK10001EPF wages are greater than or equal to 15000/-
GK10002Mismatch in EPF and EPS wages
GK10003EPF contribution remitted is greater than due remittance
GK10004EPS contribution remitted is greater than due remittance
GK10005(EPF-EPS) difference contribution remitted is greater than due
GK10006EPS contribution remitted is greater than due remittance
GK10007Aadhaar not seeded

With that, we complete this post on Pradhan Mantri Garib Kalyan Yojana | Relief for COVID-19. If you have any questions or comments, let us know in the comment section below.

We will update this post as and when we get any more news. Subscribe to be in the loop.