PMGKY BENEFITS
EPF Implement PMGKY Circular 2020
EPF Implement PMGKY Circular refers to the EPFO instructions issued in April 2020 for implementing the Pradhan Mantri Garib Kalyan Yojana (PMGKY) package for eligible EPF members and establishments affected by the COVID-19 pandemic. The scheme provided Government-funded support for the employee’s and employer’s EPF and EPS contributions for eligible low-wage employees. Under the original scheme, the Government paid a total of 24% of monthly wages into the EPF accounts of eligible employees, comprising the employee’s 12% share and the employer’s 12% EPF and EPS contribution.
The EPF Implement PMGKY Circular was issued as part of the Government’s response to the economic disruption caused by the pandemic. The official EPFO scheme guidelines state that the Government proposed to pay 24% of monthly wages for eligible wage earners earning below ₹15,000 per month who were employed in establishments having up to 100 employees, provided 90% or more of the establishment’s employees earned below ₹15,000 per month.
The original scheme was valid for wage months March 2020, April 2020 and May 2020. EPFO later issued a memorandum dated 10 July 2020 extending the benefit for June, July and August 2020 under the Aatmanirbhar Bharat Abhiyan, making the support applicable for six wage months in total. ([epfindia.gov.in](https://www.epfindia.gov.in/site_docs/PDFs/Circulars/Y2020-2021/CI_Extn_PMGKY_1142.pdf))
What Is EPF Implement PMGKY Circular?
EPF Implement PMGKY Circular describes the EPFO Office Memorandum and scheme guidelines used to operationalise the PMGKY EPF relief package. The original Office Memorandum was dated 9 April 2020, and an EPFO web-circulation dated 10 April 2020 forwarded the approved scheme guidelines to field offices.
The principal objective was to prevent disruption in the employment of low-wage employees and support establishments employing up to 100 employees where at least 90% of the workforce earned less than ₹15,000 per month.
Instead of requiring the eligible employee and employer to fund the covered EPF and EPS contribution amounts in the normal way, the Government paid the eligible contribution amounts directly into the employees’ EPF accounts through the EPFO system.
This made the PMGKY package a significant temporary relief measure for eligible establishments and workers during the pandemic period.
Read the official EPFO PMGKY Scheme GuidelinesPMGKY EPF Scheme 2020
PMGKY EPF Scheme 2020 provided temporary financial support for eligible EPF members. Under the scheme, the Government paid 24% of monthly wages into the EPF account of each eligible employee, representing 12% employee contribution and 12% employer contribution.
The scheme applied to employees who were already members of the Employees’ Provident Fund Scheme, 1952, were drawing wages below ₹15,000 per month and were employed in establishments covered under the EPF and MP Act, 1952.
The establishment-level eligibility condition was equally important. The establishment needed to employ up to 100 employees and at least 90% of its employees needed to earn less than ₹15,000 per month.
Therefore, an establishment was not eligible simply because it employed some workers earning below ₹15,000. The 90% workforce condition also had to be satisfied.
EPF 24% Government Contribution
EPF 24% Government Contribution is the central feature of the original PMGKY EPF relief package.
The total 24% consisted of the employee’s 12% contribution and the employer’s 12% contribution toward EPF and EPS as applicable under the scheme.
Because the Government paid the eligible employee contribution, employers were instructed not to deduct the employee’s share of EPF contributions from the wages of eligible employees for the covered wage months.
This was an important payroll requirement. An employer that deducted the employee’s 12% share despite the employee being eligible for PMGKY relief could fail to follow the scheme instructions.
The employer’s own liability for other applicable amounts did not disappear. The official guidelines explain that after an eligible ECR was filed, the challan would separately reflect Government relief for eligible employees and amounts that remained payable by the employer, including applicable EDLI contributions, EPF administrative charges and contributions relating to ineligible employees.
PMGKY EPF Eligibility
PMGKY EPF Eligibility depended on both employee-level and establishment-level conditions.
At the establishment level, the establishment had to employ up to 100 employees and 90% or more of its employees had to earn monthly wages below ₹15,000.
At the employee level, the worker had to be an existing member of the EPF Scheme, 1952 and have monthly wages below ₹15,000.
The establishment also had to be covered under the EPF and MP Act, 1952.
The PMGKY scheme therefore used multiple eligibility filters. A business with 101 employees could not satisfy the establishment-size condition simply because a large percentage of its workforce earned less than ₹15,000. Similarly, an employee earning ₹15,000 or more could not qualify merely because the establishment as a whole met the 90% condition.
₹15,000 Wage Limit Under PMGKY
The EPF Implement PMGKY Circular used ₹15,000 as a key employee-level wage threshold.
The eligible employee had to draw wages below ₹15,000 per month. The establishment-level requirement also used the same wage threshold when determining whether at least 90% of employees fell within the low-wage category.
This meant payroll teams had to use accurate monthly wage information when determining eligibility.
Employers should not confuse this historical PMGKY threshold with current EPFO wage-ceiling rules. The PMGKY scheme was a temporary 2020 relief measure and its eligibility conditions applied to the specific wage months covered by the scheme.
100 Employee Establishment Condition
Another essential part of PMGKY EPF Eligibility was the establishment-size condition.
The establishment had to employ up to 100 employees. This included the establishment-level count used by the EPFO system for determining whether the PMGKY benefit could be provided.
Businesses with several branches had to consider how the establishment declaration and Form 5A reflected branches and departments. EPFO’s instructions required electronically filed Form 5A to contain the details of all branches or departments and the EPF code numbers allotted separately to those branches or departments.
This means businesses with complex organisational structures needed to pay particular attention to the establishment information submitted through the portal.
90% Low-Wage Employee Condition
The 90% rule was one of the most important parts of the PMGKY EPF Scheme 2020.
At least 90% of the establishment’s employees had to earn less than ₹15,000 per month. The purpose was to target establishments whose workforce was predominantly made up of low-wage EPF members.
Employers therefore needed accurate employee-count and wage information. The EPFO system checked the ECR information and calculated the percentage of employees earning below ₹15,000.
If the system calculated that less than 90% of employees earned below ₹15,000, the establishment would not receive the PMGKY benefit through the system.
This automated validation reduced the risk of incorrect eligibility claims but also made accurate ECR data especially important.
Original PMGKY Wage Months
The original EPF Implement PMGKY Circular covered wage months March 2020, April 2020 and May 2020.
Employers claiming the benefit were required to comply with the scheme conditions for those wage months and file the required ECR information.
The relief was therefore not an indefinite contribution waiver. It was a defined temporary scheme covering specific wage months.
View the official EPFO PMGKY FAQsExtension Through August 2020
The Government later extended the benefit under the Aatmanirbhar Bharat Abhiyan. EPFO’s Office Memorandum dated 10 July 2020 amended the scheme’s validity so that it covered March, April, May, June, July and August 2020.
Therefore, when discussing the complete history of the EPF Implement PMGKY Circular, it is important to distinguish the original three-month scheme from the later three-month extension.
This extension increased the total period covered by the Government-funded EPF relief from three to six wage months.
The extension memorandum explicitly cites the Ministry of Labour and Employment letter dated 8 July 2020 as the authority for extending the existing benefit.
Employer Must Pay Wages And File ECR
Under the PMGKY ECR Filing process, the employer had to disburse wages for the month to all employees and file the Electronic Challan-cum-Return online to avail the benefit.
The Government relief was therefore connected with actual payroll and ECR compliance. An employer could not simply request the 24% amount without filing the required statutory return.
The scheme guidelines stated that one valid ECR had to be filed for each covered month.
The ECR then became the source of establishment and employee data used for validating eligibility and determining the Government relief amount.
PMGKY ECR Filing Validation
PMGKY ECR Filing involved establishment-level and UAN-level validations.
At the establishment level, the EPFO system checked the employee count and the percentage of employees earning below ₹15,000. If the employee count exceeded 100 or the percentage of employees earning below ₹15,000 was below 90%, the benefit would not be provided.
At the UAN level, the system checked whether the wages were below ₹15,000 and calculated the maximum contribution dues.
The system could reject relief where the contribution amount shown in the ECR exceeded the maximum permissible contribution for the applicable wage. This was intended to prevent incorrect contribution values from being used to claim Government relief.
UAN And Aadhaar Validation
Another important part of the EPF Implement PMGKY Circular was UAN validation against Aadhaar.
EPFO’s implementation instructions stated that the UAN of an eligible employee had to be validated against Aadhaar for the benefit to be provided through the system.
If the UAN was not validated against Aadhaar, the system would not provide the PMGKY relief.
This made KYC and member-data validation important parts of the employer’s compliance process during the PMGKY period.
Employers therefore had to pay attention not only to employee wages but also to the accuracy and validity of UAN-linked records.
Employee Contribution Should Not Be Deducted
The EPF 24% Government Contribution structure had a direct effect on employee payroll.
Because the Government was paying the employee’s 12% EPF contribution for eligible workers, the employer was instructed not to deduct that employee contribution from the employee’s wages for the covered months.
This created a positive temporary payroll benefit for eligible workers because the employee’s normal EPF deduction did not reduce the eligible employee’s take-home wages for the covered months.
Payroll teams therefore had to distinguish PMGKY-eligible employees from employees who did not qualify.
For ineligible employees, normal contribution rules continued to apply.
What The Employer Still Had To Pay
The EPF Implement PMGKY Circular did not mean that every EPF-related amount disappeared for eligible establishments.
The employer remained responsible for amounts reflected as payable by the establishment in the challan, including applicable EDLI contributions, EPF administrative charges and contributions relating to ineligible employees.
The Government-funded relief specifically covered the employee’s and employer’s EPF/EPS contribution amounts for eligible employees according to the scheme.
This distinction is important when reconciling an old PMGKY challan. The total amount shown on the challan could include both Government relief and amounts that continued to be payable by the employer.
Direct Credit Of Government Relief
After the employer filed a valid ECR and remitted the amount payable by the employer as reflected in the challan, the eligible employee and employer contribution amounts were credited directly to the respective UANs by the Central Government.
The employer did not have to submit a separate reimbursement claim for the eligible relief after completing the prescribed ECR process.
This system was designed to simplify the payment flow and allow eligible contributions to be credited directly through EPFO’s electronic system.
For historical records, employers should therefore retain ECR files, challans and payment evidence supporting the PMGKY transaction.
Form 5A Requirements
Form 5A was another important element of PMGKY ECR Filing.
The scheme instructions required Form 5A filed electronically to contain details of all branches and departments and EPF code numbers, where separate codes had been allotted.
This requirement was particularly relevant to businesses with multiple establishments or branches.
Inaccurate Form 5A information could create difficulties when EPFO validated establishment details or determined the employee count and structure.
Employer Certification And Undertaking
Employers claiming PMGKY relief had to certify the correctness of the information furnished electronically in the ECR and Form 5A.
The employer also had to provide an undertaking acknowledging liability for penal and coercive consequences for submitting incorrect or false information or declarations to avail the relief.
This made accurate data submission a critical part of the scheme.
Employers should therefore avoid treating the PMGKY declaration as a routine formality. Wage information, employee counts and UAN details needed to be accurate.
Employees Already Enrolled Under EPF
The PMGKY EPF Scheme 2020 was designed for employees who were already members of the EPF Scheme, 1952.
This means the benefit was not simply a general payment for every worker earning below ₹15,000. Existing EPF membership was one of the eligibility conditions.
Employees without the required EPF membership status could not automatically qualify merely because their wages fell below the prescribed limit.
This distinction is useful when reviewing historical employee records and explaining why one worker may have received Government-funded EPF relief while another did not.
Businesses With Multiple Branches
The EPF Implement PMGKY Circular had practical implications for businesses with several branches or departments.
Employers had to make sure that Form 5A accurately reflected the organisational structure and relevant EPF code numbers.
Incorrect branch information could make the establishment-level employee count or EPFO validation process more difficult.
Businesses should therefore retain their historical Form 5A records together with ECR and challan documents when reviewing PMGKY compliance.
Common PMGKY Compliance Mistakes
One common mistake was assuming that any establishment with fewer than 100 employees automatically qualified. The 90% low-wage employee condition also had to be satisfied.
Another mistake was assuming that every employee earning below ₹15,000 qualified. The employee had to be an existing EPF member and satisfy the other conditions.
A further error was deducting the employee’s 12% contribution from eligible workers despite the Government paying that share under the scheme.
Incorrect UAN-Aadhaar validation was another possible cause of benefit failure.
Employers could also face problems if the ECR contained contribution amounts above the permissible amount calculated by the EPFO system.
Negative Risks Of Incorrect PMGKY Claims
Incorrect declarations under the EPF Implement PMGKY Circular could have serious consequences because the scheme required an employer certification and undertaking.
Submitting false or incorrect establishment counts, wage information or employee information could expose the employer to the consequences stated in the scheme guidelines.
For historical compliance reviews, employers should therefore preserve the source ECR, employee wage data, UAN information and establishment declarations.
A complete audit trail can help establish how the eligibility decision was made and reduce uncertainty when old records are examined.
Historical Importance Of PMGKY
The PMGKY EPF Scheme 2020 is now a historical pandemic-era scheme, but its records can still be relevant to payroll audits, employee queries, statutory reconciliation and financial documentation.
Businesses may need to explain why Government relief was received for particular employees or why a particular month was included or excluded.
EPFO’s official records show that the scheme was implemented digitally through the ECR system and that the benefit was credited upfront to eligible UANs after validation.
Maintaining these historical records provides a reliable basis for answering questions about past EPF transactions.
Official EPFO Sources
The official EPFO PMGKY scheme guidelines are the primary source for the original relief package and its eligibility conditions.
Official EPFO PMGKY Scheme GuidelinesEPFO also published specific instructions explaining how eligible employers could avail the benefit through the ECR process and how establishment-level and UAN-level validation worked.
Official EPFO PMGKY ECR Benefit InstructionsThe FAQ published by EPFO provides additional information about eligibility and the original three-month period.
Official EPFO PMGKY FAQsThe later EPFO Office Memorandum dated 10 July 2020 confirms the extension of the scheme through the August 2020 wage month.
Official EPFO PMGKY Extension MemorandumRaj Consultancy Labour Law Compliance Support
Businesses that require support with EPF compliance, payroll records, statutory documentation and labour-law requirements can review Raj Consultancy’s service resources.
Raj Consultancy Services Raj Consultancy Labour Law Compliance ServicesProfessional compliance support can be useful when historical EPF records involve several establishments, multiple employee categories, old ECR files or contribution reconciliation.
Seven Essential PMGKY Compliance Checks
The EPF Implement PMGKY Circular can be reviewed through seven practical checks.
1. Check establishment size: Confirm that the establishment had up to 100 employees for the relevant period.
2. Check the 90% condition: Confirm that 90% or more of the employees earned below ₹15,000 per month.
3. Check employee eligibility: Confirm that the employee was an existing EPF member and earned below ₹15,000.
4. Check ECR: Confirm that a valid ECR was filed for each applicable wage month.
5. Check UAN-Aadhaar: Confirm that the eligible UAN was validated against Aadhaar.
6. Check employee deduction: Confirm that the employee’s 12% EPF contribution was not deducted from the wages of an eligible employee during the covered period.
7. Check records: Reconcile the ECR, challan, Form 5A, Government relief and employer-paid amounts.
This process provides a simple and reliable framework for reviewing historical PMGKY compliance.
Frequently Asked Questions
What is the EPF Implement PMGKY Circular?
EPF Implement PMGKY Circular refers to the EPFO instructions issued to implement the Government’s PMGKY package for payment of eligible EPF and EPS contributions.
What was the PMGKY EPF benefit?
The Government paid 24% of monthly wages into the EPF accounts of eligible employees, comprising the employee’s 12% contribution and the employer’s 12% EPF and EPS contribution.
What was the employee wage limit?
The employee had to draw wages below ₹15,000 per month under the original PMGKY scheme.
What was the establishment employee limit?
The establishment had to employ up to 100 employees.
What was the 90% condition?
At least 90% of the establishment’s employees had to earn less than ₹15,000 per month.
Which wage months were initially covered?
The original scheme covered March 2020, April 2020 and May 2020.
Was PMGKY later extended?
Yes. The benefit was later extended to June, July and August 2020 under the Aatmanirbhar Bharat Abhiyan, making six covered wage months in total.
Did eligible employees have their 12% contribution deducted?
No. Under the scheme instructions, the employer was not to deduct the employee’s EPF contribution from the wages of eligible employees for the covered months.
Was the employer’s entire EPF liability eliminated?
The Government funded the employee and employer EPF/EPS contribution amounts for eligible employees according to the scheme. Other amounts, including applicable EDLI contributions, administrative charges and contributions for ineligible employees, remained payable as reflected in the challan.
Was UAN-Aadhaar validation important?
Yes. EPFO’s ECR validation instructions stated that the benefit would not be provided where the eligible UAN was not validated against Aadhaar.
Was ECR filing required?
Yes. The employer had to file the required Electronic Challan-cum-Return online to avail the benefit.
Was Form 5A important?
Yes. The scheme required electronically filed Form 5A to contain details of branches and departments and relevant EPF code numbers.
Did the employer need to claim reimbursement separately?
No. After the employer completed the required ECR process and paid the amounts shown as payable by the employer, the eligible Government relief was credited directly to the respective UANs.
Why Accurate PMGKY Records Matter
The EPF Implement PMGKY Circular created a digitally validated process in which establishment size, wage percentages and UAN information were checked by the EPFO system.
This makes old ECR records particularly valuable for historical audits.
An employer should ideally retain ECR files, challans, employee wage data, UAN details, Form 5A and declarations together.
Such records can help demonstrate why an establishment was considered eligible and how the Government relief amount was determined.
Conclusion
EPF Implement PMGKY Circular was a significant temporary EPFO measure introduced in 2020 under the Pradhan Mantri Garib Kalyan Yojana. The original scheme provided Government-funded EPF and EPS contribution relief amounting to 24% of monthly wages for eligible employees.
The PMGKY EPF Scheme 2020 applied to establishments with up to 100 employees where 90% or more of employees earned below ₹15,000 per month. Eligible employees also had to be existing EPF members drawing wages below ₹15,000.
The EPF 24% Government Contribution represented the employee’s 12% share and the employer’s 12% EPF and EPS contribution. Eligible employees were not to have their own 12% contribution deducted from their wages during the covered months.
PMGKY EPF Eligibility depended on establishment size, the 90% low-wage condition, employee wage level and existing EPF membership. These conditions had to be supported by correct electronic records.
PMGKY ECR Filing was essential because EPFO used the ECR to validate establishment and employee eligibility. The system checked employee count, percentage of low-wage employees, wage levels and UAN-Aadhaar validation.
The original scheme covered March, April and May 2020. EPFO later extended the benefit through June, July and August 2020 under the Aatmanirbhar Bharat Abhiyan. :contentReference[oaicite:1]{index=1}
The scheme also required accurate Form 5A, employer certification and supporting information. Incorrect or false declarations could attract the consequences specified in the scheme guidelines.
For historical payroll and compliance reviews, employers should retain ECR files, challans, Form 5A, employee wage records and UAN-related documentation. These records provide a reliable basis for verifying the Government relief received during the PMGKY period.
The PMGKY EPF scheme was a temporary 2020 relief measure. It should therefore be treated as a historical reference rather than a current EPFO contribution benefit. Employers researching current EPF obligations should refer to the latest EPFO notifications and applicable statutory rules.
