COVID-19 has crippled the economic activities across sectors equally be it a businessman or a salaries class or a daily wage labor. In the wake of such pandemic situation spreading across the country, the Government of India has announced some relief measures for all class of persons. One among such relief measures announced is that the government will pay the employee provident fund (EPF) contribution both of the employer and the employee (12 per cent each) for the next three months. This measure is taken to ensure that the regular contribution by the employees towards their PF is not lost.
This relief is applicable for those establishments that have up to 100 employee and 90 percent of whom earn under Rs. 15,000 monthly wage. This will indirectly help employers to keep their employees on their payrolls despite disruption.
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 will be credited by the Central Government for three months in UANs of contributory EPF members.
2. What are the effective months during which the scheme is being implemented?
This scheme is valid for the wage months of March 2020, April 2020 and May 2020.
3. How can i check my eligibility to avail this scheme?
The government has laid out the rules as such. Only if the establishment satisfies both the rules then such establishment can benefit under this scheme
- The total employees employed should be upto 100 ie the establishment which has 100 or less employees can avail
- 90 Percentage of such employees should be drawing a monthly wage less than Rs.15000
For Example: I run an institution ABC&Co. I have employed 80 employees. My institution is covered under Employees Provident Fund and Miscellaneous provisions act, 1952 and I having been filing the returns on time. On verification of my last filed ECR(February 2020) it is clear that 74 employees (around 93 percent of the total workforce) draw a wages less than Rs. 15000.
Since I satisfy both the conditions mentioned above I will become an eligible establishment.
Suppose Lets say I have employed 80 employees and and of which 20 employees (25 percent of work force) draws a salary more than 15000 per month. In that case my establishment will not be covered as the condition No.2 does not get satisfied.
These above rules are applicable to the establishment
4. Are all employees of eligible establishment eligible for the Central Govt. relief under this Scheme?
The government has laid out the following conditions
- Employees whose wages is less than Rs.15000
- His UAN is seeded with Aadhar
- The employee should be a member of EPF scheme and contributions from such employee to his EPF account are received for at least 6 months.
5. How an employee gets benefitted out of this scheme?
Since the contribution towards the PF is now paid by the Central government directly, such deduction shall not be made from the pay of the employee leading to higher take home salary on the part of employee.
Let’s say an employee working with ABC&Co. for the past 5 Years and have been regularly contributing towards EPF. His take home salary after all deductions comes to Rs. 10958. This table below details the benefit accruing in the hands of employees.
6. I am an exempted establishment under the act, Will I be eligible to avail the benefit?
Yes, you can avail the benefit provided you follow the two conditions mentioned above.
7. How can the benefits be applied?
The employer of such establishment is required to disburse salary/wages for the said months without deducting the PF amount due from the employee and has to file ECR to claim benefit under this scheme.
8. Can the PF contribution be paid and reimbursed by the central Government?
No, Once the ECR is uploaded the challan will separately show the employee and employer contribution as “Central Government relief due” under this scheme for eligible employees and for the remaining employees, once the balance amount is paid by the employer, the EPF and EPS accounts of such eligible employees will reflect the contributions made by the government on their PF balances.
Good
Comments are closed.