Relief Measures Under Self Reliant India (Atmanirbhar Bharat) Movement for Labour Laws Amidst COVID-19 Pandemic

This is subsequent to relief measures announced earlier for labour laws amidst Covid-19 Pandemic.

As per the Self Reliant India Movement (Atmanirbhar Bharat) announced with effect from  13th May 2020, following additional reliefs are given for compliance under Employees Provident Fund Act.

Employees Provident Fund &MP Act :-

1. GOI has extended the Pradhan Mantri Garib Kalyan Yojna (PMGKY) till August 2020.

  • Under PMGKY, GOI will pay the 24% PF contribution for establishments fulfilling the following conditions;
  • Employee strength is less than 100 employees, and
  • 90% of employees earn monthly wages less than Rs.15000/- . The dept is silent whether wages means Baisc+DA or calculated as per Supreme Court judgement i.e. Gross wages less HRA/OT etc.
  • Some EPFO officers with whom we interacted have given a view that, the wages must be Basic + DA.
  • KYC of all employees should have been updated
  • Employers should submit a declaration before filing the ECR.
  • Eligible Employers should not deduct PF contributions from employees salaries
  • Employers eligible for this benefits have to pay the administration (0.5%) & inspection (0.5%) charges only.

2. For all those employees and establishment who are NOT covered under PMGKY, the statutory EPF rate of contribution will be reduced from existing 12% to 10% till August 2020.

Central Public Sector Enterprises and State Public Sector Units will however continue to contribute 12% as employer contribution.

3. Gov has also given relaxation the condition of simultaneously paying the dues after filing the ECR . The establishments can now pay the dues later after filing the ECR however, dues should be paid within the due dates / extended due dates.

4. No penal action against the employer, if ECR is filed in time and dues are paid within the extended time.


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March 2021