Coronavirus effect: EPFO extends due date for filing ECR for March

On the back of the country-wide lockdown imposed by the central government to contain the spread of Coronavirus, the Employees’ Provident Fund Organisation (EPFO) has extended the due date for filing of Electronic Challan cum Return (ECR) for wage month March to May 15 for the employers who have paid wages to their employees for March 2020.

The EPFO’s decision to extend the due date for filing is expected to benefit about six lakh establishments, including four lakh establishments eligible under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) package.

“The employers disbursing the wages for March 2020 not only get relief of extension of due date for payment of EPF dues for March but also avoid liability of interest and penalty, if they remit on or before 15.05.2020,” the EPFO said in a press brief on Wednesday.

The due date for filing ECR for March was ordinarily April 15. So, a grace period of thirty days has been allowed to the establishments covered under EPF & MP Act, 1952, to remit the contributions and administrative charges due for March 2020.

“The above decision of the ministry of labour, GoI, is to support and provide relief to employers of establishments which have disbursed wages for March 2020 to its employees and an incentive to employers for wage payment to employees during the COVID-19 pandemic. The move is in keeping with the objective of PMGKY to prevent disruption in employment and ensure earning to employees to help them fight the pandemic,” EPFO added.

The EPFO has already put in place a mechanism to credit employers’ and employees’ contributions towards the security scheme launched by the government under PMGKY. It has set up an electronic mechanism as part of the ECR filing to enable the establishments to avail the relief in respect of their eligible employees.

As part of the PMGKY package, with a view to prevent disruption in the employment of low wage earning EPF members and support EPF covered establishments employing up to one hundred employees, the central government has proposed to grant relief in form of credit of EPF & EPS contributions (24% of wages) for three months in UANs of contributory EPF members, earning monthly wage of less than Rs 15,000, who are already employed in EPF covered establishments/factories employing up to one hundred employees with 90% or more of such employees earning monthly wage of less than Rs 15,000.