How to claim 24% PF contribution by Modi govt for COVID-19: New electronic challan-cum-return explained

The Employees Provident Fund Organization (EPFO) today said it has put in place an electronic mechanism for crediting EPF and EPS accounts of its subscribers as per the package announced by the Union Government under PM Gareeb Kalyan Yojana. The package was announced on March 26 last for helping the poor to fight Coronavirus pandemic. The Central government had said it will contribute 24 per cent of salary (12% employer share+12%empoyee share) of employees working in firms having up to 100 workers of which 90% withdraw not more than Rs 15,000/month salary. This contribution will be made by the government for three months.

Eligible establishments can now claim the relief by filing Electronic Challan-cum-return (ECR). The due amount on behalf of Employers and Employees reflected in the ECR on account of EPF and EPS (24% wages) will be credited by the Central Government for three months in UANs of contributory EPF members, earning a monthly wage of less than Rs.15000, who are already employed in EPF covered establishments/factories employing up to one hundred employees with 90% or more of such employees earning a monthly wage of less than Rs.15000. Around 79 lakh subscribers and approximately 3.8 lakh establishments are expected to benefit from the package.

The Central Government had launched the Pradhan Mantri Garib Kalyan Yojana (PMGKY) on 26.03.2020 to help poor fight the battle against Corona Virus pandemic. The PMGKY package is aimed at preventing disruption in the employment of low wage-earning EPF members and extending support to the eligible EPF covered establishments.

To implement the above package, the Ministry of Labour and Employment had subsequently notified the Scheme specifying the objective, eligibility criteria, validity period, process and manner to avail the relief.

How to avail relief

The ministry said that the Electronic Challan-cum-Return (ECR) filing will enable the establishments to avail the relief in respect of their eligible employees. The employer in relation to any eligible establishment, shall disburse wages for the month to all employees of the establishment and file Electronic Challan cum Return (ECR) with required certificate and declaration to avail the benefit under the Scheme.

The challan will show the amount of employees’ and employers’ contributions due as Central Government relief in respect of eligible employees and the remaining amount payable by the employer after the ECR is uploaded and validation of the eligibility of establishment and employees.

After the employer remits the payment due from him for other employees, as reflected in challan, the EPF and EPS contributions will be credited directly in the UANs of the eligible employees of the establishment by the Central Govt.

The details of the Scheme and FAQs containing clarifications on various aspects of the package are available on homepage of EPFO website under the TAB “COVID-19”