The Government has announced PM Garib Kalyan Yojna, 2020 wherein Employer & Employees’ Share of contribution (12% +12%) under The EPF Act for 3 months to be borne by the government for all such companies who have less than 100 employees and more than 90% of the employees are getting wages less than 15,000/- per month. Scheme is yet to be notified. However since the time of compliance is coming closer, so pending notification of scheme, EPFO has circulated FAQ on the Scheme. FAQ are being attached herewith for your ready reference
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Key points which emerges out of FAQ
- Employee whose Contributions in ECR have been received on monthly wage of less than Rs.15000/- will be eligible employee for benefit
- 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.
- The employer in relation to any eligible establishment, is required to first disburse salary/wages for the month to all employees of the establishment, without deducting EPF contributions from wages of eligible employees and then file Electronic Challan cum Return (ECR) within due dates as prescribed under EPF Scheme, 1952.
- The benefit of Govt. subsidy can be availed only if the ECR for each of the wage month are filed within due dates- March, 2020 due on or before 15.04.2020, April 2020 on or before 15.05.2020 and May 2020 on or before 15.06.2020.
- Each eligible establishment has to file only one ECR for each of three months in respect of its total employees both eligible as well as ineligible employees.
- 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).
- The employer must ensure to file correct information, statement or declaration- total number of employees, disbursement of wages, amount of wages in the ECR and ownership and establishment in Form 5A.
- 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 subsidy and also face the penal consequences for such contravention under the EPF & MP Act, 1952
9.      24% benefit amount should be credited only in Aadhaar validated UANs and process flow of funds to exempted PF Trust
10. Only one ECR for one month should be allowed.
11. No Revision of ECR
12. No supplementary ECR or Arrear ECR
13. PF wages of the member in ECR for benefit months to be checked with PF wage of last six months.
14.  Gross wage column of each member and column for excluded employee in ECR would be made compulsory.
