Govt to Foot PF for Employees below Rs. 15K per month

To provide some relief to employees and employers from financial impact of COVID-19 pandemic, the Honourable Finance Minister has announced the PM Garib Kalyan Yojna, 2020.

Under this Scheme, the Union Government will deposit both employer as well as employees’ contribution to the EPF account of an employee for the next three months.

As per the EPF rules, an employer and employee both contribute 12 per cent of the monthly salary to the EPF account. However, for the next three months, the Government will contribute 12% +12% to an employee’s account.

This benefit will only be applicable to establishments:

1. Covered under the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952

2. Employing less than 100 employees

3. Where 90% of employees earn Rs.15,000/- per month or less.

Eligible employers are requested to kindly ensure:

1. Disbursement of timely wages to their employees.

2. Filing of ECR (Electronic Challan cum Return) for the wage month before 15th of the following month.

3. Paying full wages (without deducting the employees’ share of EPF) to employees for whom the benefits of cash transfer are to be claimed.