The Great Lockdown | Volume 1 | Issue 1
Covid-19: Economic Relief Package by Government of India (GoI)
The Great Lockdown is a historical landmark and is leading to financial burn of high proportions. As a response plan, Hon’able Finance Minister of India, Mrs. Nirmala Sitharaman, announced on 26th March 2020 a series of measures to deal with the economic distress. GoI has allocated INR 1.7 lakh crore relief package for the poor under PMGKY to help them fight the battle against the pandemic. The package addresses the disruptions caused to business and impact on low wage earners. We are monitoring all news and scouting for opportunities to help businesses avoid costs and/or mitigate and business risks.
Subsequently, we have highlighted relevant segments of package for business and action plans to avail benefits.
What’s the Deal?
Basis eligibility criteria, GoI will bear employee’s EPF contribution (12%) and employer’s EPF and EPS contribution (12%).
Tenure: 3 months (March-20, April-20 and May-20) extended further for 3 months till August-20 as on 14th May 2020.
Expected reach: ~80L employees and ~4L establishments
Expected relief amount: INR 5,000 crore
The Caveats…
Establishment should be covered and registered under Employees’ Provident Funds & Misc. Provisions Act, 1952.
Establishment should not employ more than 100 employees and greater than or equal to 90% of total employees should draw monthly wage less than or equal to INR 15,000. For this purpose, contributory member count from September 2019 till February 2020 will be considered.
Employees with monthly wage less than and equal to INR 15,000 should also have UAN linked with Aadhar.
Close the deal…
No change in format or process of filing ECR. Eligible establishments should submit declaration on the portal prior to filing ECR.
Declaration once submitted cannot be edited.
Post declaration and filing of ECR, portal will perform establishment wise and UAN wise validation and will process benefits only if no discrepancies are noted.
Benefits will be processed only against the first ECR submitted for the month.
Grab the opportunity!!!
- Corporates should obtain declaration from contractors to check for eligibility.
- ii) On sample basis, verify on EPFO portal for contractors who fall under the scheme.
- iii) Intimate contractors to avail benefits and adjust against their payments.
