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Mechanism to credit EPF and EPS Accounts by EPFO

EPFO puts in place Online Mechanism to credit EPF and EPS Accounts of Subscribers as per PM Gareeb Kalyan Yojna

Employees Provident Fund Organization (EPFO), a statutory body under Union Ministry of Labour and Employment, 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 Yojna on 26.3.2020 for helping the poor to fight Corona pandemic.

Accordingly, the relief announced by the government can be claimed by eligible organizations/ establishments 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. This is estimated to have a subsidy outgo of Rs 4800 crore in three months.

It may be recalled that Central Govt. had launched the Pradhan Mantri Garib Kalyan Yojana (PMGKY) on 26.03.2020 to help the 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.

The Electronic Challan-cum-Return (ECR) filing will enable the establishments to avail the relief in respect of their eligible employees.

The employer about any eligible establishment, shall disburse wages for the month to all employees of the establishment and file Electronic Challan cum Return (ECR) with the required certificate and declaration to avail the benefit under the Scheme.

After ECR is uploaded and eligibility of establishment and employees is validated, then the challan will separately show the amount of employees’ and employers’ contributions due as Central Govt. relief in respect of eligible employees and the remaining amount payable by the employer.

After the employer remits the payment due from him for other employees, as reflected in the challan, the EPF & 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 the homepage of the EPFO website under the TAB “COVID-19”. 

TaxClue Team

Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building. TaxClue is a team of young professionals. We started in December 2016 with the mission of knowledge sharing. TaxClue would like to hear your valuable suggestion. Please write to our editorial team at [email protected]

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