Confused About Wage Eligibility for PMGKY Scheme? Let's Clarify Gross vs. EPF Wages

Dear Sir/Madam,

Clarification on Wages in PMGKY Scheme

Please clarify:

1. Does earning monthly wages indicate GROSS WAGES in the Pradhan Mantri Garib Kalyan Yojana (PMGKY) Scheme?

OR

2. Does earning monthly wages indicate EPF/EPS WAGES in the Pradhan Mantri Garib Kalyan Yojana (PMGKY) Scheme?

Whether an employee who is earning monthly GROSS WAGES more than Rs.15,000 but earning monthly EPF/EPS WAGES less than Rs.15,000 and is employed in an eligible establishment, is eligible for Central Govt. relief under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) Scheme.

Kindly clarify.

Information and Guidance Needed

1. Please see Serial Numbers 2, 3, and 5 in the attached ECR. In those serial numbers, employees who are earning monthly GROSS WAGES more than Rs.15,000 but earning monthly EPF/EPS WAGES less than Rs.15,000 in an eligible establishment are deemed eligible for Central Govt. relief under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) Scheme. Is this correct, sir?

2. Please find Point "C" in the enclosed Facebook image. EPFO RO Vadodara (https://www.facebook.com/epfrovadodara/posts/128547535479561) has stated that an employee earning EPF/EPS wages less than Rs.15,000 is eligible for PMGKY. Is this correct, sir?

3. Please refer to the attached screenshot.

In the attached PMGKY Scheme CERTIFICATE AND DECLARATION screenshot (underlined in green), the Government has used the sentence:

"earned EPF/EPS wages less than Rs.15,000 qualifying for Central Govt. relief."

According to the above sentence, an employee who is earning monthly EPF/EPS wages less than Rs.15,000 and is employed in an eligible establishment is eligible for Central Govt. relief under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) Scheme. Is this correct, sir?

4. Please find the attached PMGKY Benefit Not Given Remarks:

Reason Code: GK10001

Reason Name: EPF wages are greater than or equal to Rs.15,000

Employees who are earning monthly EPF/EPS wages greater than or equal to Rs.15,000 and are employed in an eligible establishment will not be eligible for Central Govt. relief under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) Scheme. Here, EPFO does not mention Gross Wages, implying that Gross wages do not affect the eligibility criteria for PMGKY.

Therefore:

(i) An employee who is earning monthly GROSS WAGES more than Rs.15,000 but earning monthly EPF/EPS WAGES less than Rs.15,000 and is employed in an eligible establishment is eligible for Central Govt. relief under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) Scheme.

(ii) An employee who is earning monthly EPF/EPS wages less than Rs.15,000 and is employed in an eligible establishment is eligible for Central Govt. relief under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) Scheme.

Is this correct, sir?

Thanks & Regards,

Thirumurugan.

This is a grey area even for the EPF Organisation. I was under the impression that the salary for all purposes should be PF qualifying salary. However, I came to know that it is the gross salary and not the PF salary. The government has been issuing many circulars just to cover the stimulus package of 20 lakh crores. This is also a part of it. Therefore, I cannot comment on it.

Dear sir,

I have emailed S/Shri./Smt. Sanjay Kesari, Regional Commissioner-II/Dy. Director/National Data Center/NRPO of EPFO. Sanjay Kesari RPFC I <sanjay.kesari@epfindia.gov.in>, RPFC I, IS. I have received a reply regarding the same.

For your reference, I have enclosed the same. Please find the attached copy.

Sir,

Please find the attached copy.

Eligibility Criteria for PMGKY Scheme

Q1. Does earning monthly wages indicate GROSS WAGES in the Pradhan Mantri Garib Kalyan Yojana (PMGKY) Scheme?
[OR]
Q2. Does earning monthly wages indicate EPF/EPS WAGES in the Pradhan Mantri Garib Kalyan Yojana (PMGKY) Scheme?

Q3. Whether an employee who is earning monthly GROSS WAGES more than Rs. 15,000 but earning monthly EPF/EPS WAGES less than Rs. 15,000, employed in an eligible establishment, is eligible for Central Govt. relief under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) Scheme.

EPFO Official Answer

In the Scheme for PMGKY, the declaration part states that the EPF/EPS wages should not be more than 14,999, that is, it should be less than 15,000 for eligibility. You must have filed the declaration, and there it is clearly mentioned. The eligibility is based on EPF/EPS wages that should be less than 15,000.

Answer for Q3: Yes, he/she will be eligible as the PMGKY scheme considers only EPF/EPS wages. PMGKY benefit will be decided by EPF/EPS wages and not Gross Wages.

Dear Sir, I have a query. One of my employees has a gross salary of 22,000 and an EPF salary of 15,400, making him ineligible for the PMGKY Scheme. However, as he was only present (contributory days) for 10 days in June 2020, his EPF salary is now below 15,000. When I upload the ECR, it automatically includes the PMGKY benefit for him, although I believe he is not eligible for it.

Solution to Eligibility Issue

What is the solution to the above problem? In July, he will be present for the entire month, and both his Gross and EPF salaries will be above Rs. 15,000. Can an employee be eligible for one month and then ineligible for another month? Is this correct?

Thank you, Madhu Sir, for your reply. Does your reply imply that I should take the PMGKY benefit as there is no other option or remedy available, and in the next month, I should forego the benefit? (As it is a system error and not from our side) Please confirm.