ESIC & EPF relief scheme guidelines 2020 due to COVID19

Pradhan Mantri Garib Kalyan Yojana: A Scheme to implement the PMGKY package for credit of employee’s & employer’s shareof EPF & EPS contributions (24% of wages) for three months by Govt. of India.


The Govt. of India on 26.03.2020 relief package under Pradhan Mantri Garib Kalyan Yojana (PMGKY) and the Central Govt. proposes to pay 24 % of the monthly wages into EPF accounts for next three months of Wage-earners below Rupees 15,000/- per month, who are employed in establishments having up to one hundred employees, with 90% or more of such employees earning monthly wages less than Rs.15000/-

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

Scheme Objectives:

• To support establishments employing up to one 100 employees,

• The entire employees EPF contributions (12% of wages) and employers’ EPF & EPS contribution (12% of wages), totaling 24% of the monthly wages for the next three months shall be directly paid by the Central Govt. in the EPF accounts (UAN) of employees, who :

- are already members o EPF Scheme, 1952,

- drawing wages less than Rs.15000/- per month and

- employed in establishments, already covered under the EPF & MP Act, 1952,

- employing up to 100 employees, with 90% or more of such employees earning less than Rs.15,000/-monthly wages.

Definitions for the Scheme:

The definitions mentioned in various sub-sections of section 2 of The Employees' Provident Fund & Misc. Provisions Act, 1952 and Para 2 of the Employees’ Provident FundsScheme, 1952, would be applicable mutatis mutandis to this scheme as well.

Eligibility for Scheme benefits:


For Establishments:

For Employees:

The establishment or factory should already be covered and registered under the Employees’ Provident Funds & Misc. Provisions Act, 1952.

Employee should be employed in any eligible establishment earning monthly wages of less than Rs.15000/-. The UAN of the employee should be seeded with his/her Aadhaar.

The total number of employees employed in the establishment should be up to100 (one hundred), with 90% or more of such employees should be drawing monthly wages less than Rs.15000/-.

Employee should be a member of EPF Scheme, 1952 & Employees’ Pension Scheme, 1995 whose contributions are received for any period during last six months (September 2019 to February 2020) in the ECR filed by any eligible establishment against his/her UAN.

Such contributions in ECR should have been received on monthly wage of less thanRs.15000/-

It is clarified that 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.

Modalities for implementation of the Scheme

EPFO shall develop a software for implementing this Scheme and also develop a procedure which is transparent and accountable at their own end.

EPFO shall credit the funds in the Aadhaar seeded accounts of members of EPF in electronic manner.

Monitoring Mechanism

• EPFO shall put in place a robust mechanism to monitor the implementation of the Scheme on a daily basis.

• EPFO shall provide weekly reports to the Ministry of Labour & Employment(Directorate General of Employment), Govt. of India for effective monitoring of theScheme.

Third Party evaluation

• EPFO shall undertake Third Party Evaluation of the Scheme within a period of threemonths from the closure of the Scheme and send a report to the Ministry of labour&Employment, Govt. of India.

• The expenditure incurred towards evaluation of the Scheme shall be borne by the EPFO out of its own resources.


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