8-Jul-2020: Cabinet approves the proposal to extend the EPF contribution 24% (12% employees share and 12% employers share) for another three months from June to August 2020 under PMGKY

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today has given its approval for extending the contribution both 12% employees' share and 12% employers' share under Employees Provident Fund, totaling 24% for another 3 months from June to August, 2020, as part of the package announced by the Government under Pradhan Mantri Garib Kalyan Yojana (PMGKY)/ Aatmanirbhar Bharat in the light of COVID-19, a Pandemic.

This approval is in addition to the existing scheme for the wage months of March to May, 2020 approved on 15.04.2020. The total estimated expenditure is of Rs.4,860 crore. Over 72 lakh employees in 3.67 lakh establishments will be benefitted.

Salient Features:

The salient features of the proposal are as under:

1. For the wage months of June, July and August, 2020, the scheme will cover all the establishments having upto 100 employees and 90% of such employees earning less than Rs. 15,000 monthly wage.
2. About 72.22 lakh workers working in 3.67 lakh establishments will be benefited and would likely to continue on their payrolls despite disruptions.
3. Government will provide Budgetary Support of Rs.4800 crore for the year 2020-21 for this purpose.
4. The beneficiaries entitled for 12% employers' contribution for the months of June to August, 2020 under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY) will be excluded to prevent overlapping benefit.
5. Due to prolonged lockdown, it was felt that businesses continue to face financial crisis as they get back to work. Therefore, the Hon'ble FM, as part of Aatmanirbhar Bharat, announced on 13.5.2020 that the EPF support for business and workers will be extended by another 3 months viz. for the wage months of June, July, and August, 2020.

The steps taken by the Government from time to time to ameliorate the hardships faced by the low paid workers are well accepted by the stakeholders.

30-Jun-2020: PM announces extension of Pradhan Mantri Garib Kalyan Ann Yojana till November

Food grain (Rice/Wheat): Prime Minister Shri Narendra Modi addressed the nation and announced the extension of Pradhan Mantri Garib Kalyan Ann Yojana till the end of November 2020. He said that the PMGKAY scheme is extended from July till the end of November 2020. During this five-month period, more than 80 crore people will be provided 5 kg free wheat/rice per month along with 1 kg free whole chana to each family per month. The government will spend more than Rs 90,000 crore towards the extension of the scheme. The Prime Minister also underlined that the country is moving towards the institution of ‘one nation, one ration card’, which will be of immense benefit to the poor who travel to other states in search of work.

Under the PMGKAY, for the April-June period, a total of 116.34 LMT food grains has been lifted by various States & UTs. In the month of April 2020, 37.06 LMT (93%) food grains have been distributed to 74.12 crore beneficiaries; in May 2020, total 36.83 LMT (91%) food grains were distributed to 73.66 crores beneficiaries and in the month of June 2020, 29.64 LMT (74%) food grains have been distributed to 59.29 crores beneficiaries. The Government of India is bearing 100% financial burden of approximately Rs. 46,000 crores under this scheme. Wheat has been allocated to 6 States/UTs, - Punjab, Haryana, Rajasthan, Chandigarh, Delhi and Gujarat and rice has been provided to the remaining States/UTs.

Pulses: As regards Pulses, the total requirement for the three months i.e. from April to June was estimated at 5.87 LMT. The Government of India is bearing 100% financial burden of approximately Rs 5,000 crore under this scheme. So far, 5.79 LMT Pulses have been dispatched to States/UTs and 5.59 LMT have reached the States/UTs, while 4.47 LMT pulses has been distributed. A total of 08.76 LMT pulses (Toor- 3.77 LMT, Moong-1.14 LMT, Urad-2.28 LMT, Chana-1.30 LMT and Masur-0.27 LMT ) was available in the stock as on 18.6.2020.

Food grain distribution to migrant labourers (Aatma Nirbhar Bharat Package): Under Aatma Nirbhar Bharat package, Government of India has decided that 8 LMT food grains will be provided to about 8 Crore migrant labourers, stranded and needy families, who are not covered under NFSA or State scheme PDS cards. 5 Kg of food grain per person is being distributed free of cost for the months of May and June to all migrants. The states and UTs have lifted 6.39 LMT of food grains. States and UTs have distributed 1,06,141 MT of food grains to 121.00 lakh beneficiaries in May and 91.29 lakh beneficiaries in June, 2020.

The Government of India also approved 39,000 MT pulses for 1.96 crore migrant families. 8 Crore migrant labourers, stranded and needy families, who are not covered under NFSA or State scheme PDS cards are being given 1 kg of gram/dal per family for the month of May and June for free. This allocation of gram/dal was made according to the needs of the states. Around 33,998 MT gram/dal have been dispatched to the states and UTs. A total 32,291 MT gram has been lifted by various States and UTs. 7,263 MT gram has been distributed by the states and UTs. The Government of India is bearing 100% financial burden of approximately Rs. 3,109 crores for food grain and Rs 280 crores for gram under this scheme.

Food grain Procurement: As on 29.06.2020, total 388.81 LMT wheat (RMS 2020-21) and 746.05 LMT rice (KMS 2019-20) were procured.

Open Market Sales Scheme (OMSS): Under the OMSS, the rates of Rice is fixed at Rs.22/kg and Wheat at Rs.21/kg. FCI has sold 5.73 LMT wheat and 10.12 LMT rice through OMSS during the lockdown period.

One Nation One Ration Card: As on 01 June 2020, the One Nation One Card scheme is enabled in 20 States/UTs, namely – Andhra Pradesh, Bihar, Daman & Diu (Dadra and Nagar Haveli), Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Kerala, Karnataka, Madhya Pradesh, Maharashtra, Mizoram, Odisha,  Punjab, Rajasthan, Sikkim, Uttar Pradesh, Telangana and Tripura. By 31st March 2021 all remaining States will be added to One Nation One Ration Card scheme and the scheme will be operational all over India.

6-May-2020: Around 39 crore poor people received financial assistance of Rs 34,800 crore under the PMGKP

Using the digital payment infrastructure, around 39 crore poor people received financial assistance of Rs 34,800 crore under the Pradhan Mantri Garib Kalyan Package (PMGKP) as on 5th May,2020, announced by Union Finance Minister Smt Nirmala Sitharaman on 26th March,2020 to protect them from the impact of the lockdown due to COVID 19.

As part of the PMGKP, the Government announced free food grains and cash payment to women and poor senior citizens and farmers. The swift implementation of the package is being continuously monitored by Central and State governments. Finance Ministry, the concerned Ministries, Cabinet Secretariat and PMO are leaving no stone unturned to ensure that the relief measures reach the needy swiftly and in line with the intent of the lock down.

Fintech and digital technology have been employed for swift and efficient transfer to the beneficiary. Direct Benefit Transfer (DBT), i.e. transfer that ensures that the amount is directly credited into the account of the beneficiary, eliminates leakage and improves efficiency has been employed. This has also ensured credit to the beneficiary’s account without the need for the beneficiary to physically go to the branch.

The progress achieved so far, under various components of PMGKP is as follows:

• Rs 16,394 crore front loaded towards payment of the first instalment of PM-KISAN to 8.19 crore beneficiaries.
• Rs 10,025 crore credited to 20.05 crore (98.33%) women Jan Dhan account holders as first instalment. The number of women PMJDY accounts holders whose accounts have been debited by customer induced transaction is 8.72 crore (44%). Rs. 2,785 crore credited to 5.57 crore women Jan Dhan account holders with second instalment as on 5th May.
• Rs 1405 crore disbursed to about 2.82 crore old age persons, widows and disabled persons. Benefits transferred to all 2.812 crore beneficiaries.
• 2.20 crore Building & Construction Workers received financial support amounting to Rs 3492.57 crore.
• So far 67.65 Lakh MT of food grains have been lifted by 36 States/UTs for April. 30.16 LMT of foodgrains have been distributed, covering 60.33 crore beneficiaries by 36 States/UTs for April 2020. 6.19 LMT of food grains have been distributed, covering 12.39 crore beneficiaries by 22 States/UTs for May 2020.
• 2.42 LMT of Pulses have also been dispatched to various states/UTs. Pulses have been distributed so far to 5.21 crore household beneficiaries out of 19.4 crore such beneficiaries.
• Total 5.09 crore  Pradhan Mantri Ujjwala Yojana (PMUY) cylinders have been booked under this scheme so far and 4.82 crore PMUY free cylinders already delivered to beneficiaries.
• 9.6 Lakh members of Employees’ Provident Fund Organisation (EPFO) has taken benefit of online withdrawal of non-refundable advance from EPFO account amounting to 2985 crore.
• 24% EPF contribution transferred to 44.97 Lakh employees account amounting to Rs 698 crore
• Increased rate of MGNREGA has been notified w.e.f 01-04-2020  . In the current financial year, 5.97 Crore person’s man-days of work generated. Further, Rs 21,032 crore released to States to liquidate pending dues of both wage and material.
• Insurance Scheme for Health workers in Government Hospitals and Health Care Centres has been operationalised by New India Assurance covering 22.12 Lakh health workers.

23-Apr-2020: Pradhan Mantri Garib Kalyan Package :Progress so far

Using the digital payment infrastructure , more than 33crore poor people have been directly given  financial assistance of Rs 31,235 crore( as on 22nd April,2020)under the Pradhan Mantri Garib Kalyan Package (PMGKP) announced by Union Finance Minister Smt. Nirmala Sitharaman on 26th March,2020 to protect them from the impact of the lockdown due to COVID 19.

As part of the PMGKP, the Government announced free food grains and cash payment to women and poor senior citizens and farmers. The swift implementation of the package is being continuously monitored by Central and State governments. Finance Ministry, the concerned Ministries, Cabinet Secretariat and PMO are leaving no stone unturned to ensure that the relief measures reach the needy swiftly and in line with the intent of the lock down.

Fintech and digital technology have been employed for swift and efficient transfer to the beneficiary. Direct Benefit Transfer (DBT), i.e. transfer that ensures that the amount is directly credited into the account of the beneficiary, eliminates leakage and improves efficiency has been employed. This has also ensured credit to the beneficiary’s account without the need for the beneficiary to physically go to the branch.

The progress achieved so far, under various components of PMGKP is as follows:

1. Pradhan Mantri Garib Kalyan Ann Yojana: So far 40.03 Lakh MT of food grains have been lifted by 36 States/UTs out of 40 Lakh MT for April. 19.63 lakh MT has been distributed by 31 States/UT to 39.27crore beneficiaries covered by 1.19 Crore Ration cards as April 2020 entitlement. 1,09,227 MT of Pulses have also been dispatched to various states/UTs.
2. Free Gas Cylinders to Pradhan Mantri Ujjwala Yojana beneficiaries: Total 3.05crore cylinders have been booked under this PMUY scheme so far and 2.66 crore PMUY free cylinders already delivered to beneficiaries.
3. Nonrefundable advance of 75% of outstanding balance or 3 months’ wages, whichever is lower allowed to the members EPFO: 6.06 lakh members of EPFO have availed online withdrawal of Rs. 1954 crore so far.
4. EPF contribution for 3 months; Payment of 24% of Wages as contribution to EPFO members drawing wages below Rs 15000 per months in establishment up to 100 workers.' An amount of Rs.1000 crore has already been released to EPFO for the Scheme for the month of April, 2020.78.74 lakh beneficiaries and concerned establishments have been informed. A scheme to implement the announcement finalized. FAQ shas been put on the website. A total of 10.6 lakh employees have benefitted so far and a total of Rs. 162.11 crore has been transferred in 68,775 establishments.
5. MNREGA: Increased rate has been notified w.e.f 01-04-2020.In the current financial year, 1.27croreperson’s man-days of work generated. Further, Rs 7300 crore released to states to liquidate pending dues of both wage and material.
6. Insurance Scheme for health workers in Government Hospitals and Health Care Centres : The Scheme has been operationalised by New India Assurance covering 22.12 Lakh health workers.
7. Support to Farmers: Of the total disbursement, Rs 16,146crore has gone towards payment of the first instalment of PM-KISAN. Under the scheme, all8crore out of the 8 crore identified beneficiaries got ₹2,000 directly in their account.
8. Support to PMJDY Women account holders: As large number of household in India are largely managed by the women, under the package, as many as 20.05crore women Jan Dhan account holders received ₹500 each in their account. As on 22nd April,2020, the total disbursement under the head was ₹10,025crore.
9. Support to old age persons, widows and disabled persons: The National Social Assistance Programme (NSAP)disbursed about ₹1,405crore to about 2.82 crore old age persons, widows and disabled persons. Each beneficiary received an ex-gratia cash of Rs 500 under the scheme as the first instalment. Another instalment of Rs 500 each will be paid during next month.
10. Support to Building & other Construction workers: As many as 2.17croreBuilding &construction workers received financial support from the Building and Construction Workers’ Fund managed by state governments. Under this Rs 3,497crore has been  given to beneficiaries.

2-Apr-2020: MHA writes to States/UTs to ensure smooth Disbursal of Money to beneficiaries of PM-GKY during 21-day Lockdown to fight COVID-19

The Department of Financial Services, Ministry of Finance had issued detailed guidelines on disbursal of money to beneficiaries of Pradhan Mantri Garib Kalyan Yojana (PM-GKY) through banks, during 21-day lockdown to fight COVID-19.

In pursuance of these guidelines, Secretary, Union Ministry for Home Affairs (MHA), Shri Ajay Kumar Bhalla has written to all States/UTs requesting them to take all necessary measures to ensure smooth disbursal of money to the beneficiaries of PM-GKY, while observing norms of social distancing. The concerned Departments of State Government/UT Administration, District authorities and field agencies may be informed about the guidelines for strict compliance, the communication stated.

26-Mar-2020: Finance Minister announces Rs 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against Corona Virus
The Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman today announced Rs 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against Corona Virus. While addressing the press conference here today, Smt. Sitharaman said “Today’s measures are intended at reaching out to the poorest of the poor, with food and money in hands, so that they do not face difficulties in buying essential supplies and meeting essential needs.”

Following are the components of the Pradhan Mantri Garib Kalyan Package: —

PRADHAN MANTRI GARIB KALYAN PACKAGE

1. Insurance scheme for health workers fighting COVID-19 in Government Hospitals and Health Care Centres
   • Safai karamcharis, ward-boys, nurses, ASHA workers, paramedics, technicians, doctors and specialists and other health workers would be covered by a Special insurance Scheme.
   • Any health professional, who while treating Covid-19 patients, meet with some accident, then he/she would be compensated with an amount of Rs 50 lakh under the scheme.
   • All government health centres, wellness centres and hospitals of Centre as well as States would be covered under this scheme  approximately 22 lakh health workers would be provided insurance cover to fight this pandemic.
2. PM Garib Kalyan Ann Yojana
   • Government of India would not allow anybody, especially any poor family, to suffer on account of non-availability of foodgrains due to disruption in the next three months.
   • 80 crore individuals, i.e., roughly two-thirds of India’s population would be covered under this scheme.
   • Each one of them would be provided double of their current entitlement over next three months. 
   • This additionality would be free of cost.

                Pulses:

• To ensure adequate availability of protein to all the above mentioned individuals, 1 kg per family, would be provided pulses according to regional preferences for next three months.
• These pulses would be provided free of cost by the Government of India.
3. Under Pradhan Mantri Garib Kalyan Yojana,
   Benefit to farmers:
   • The first instalment of Rs 2,000 due in 2020-21 will be front-loaded and paid in April 2020 itself under the PM KISAN Yojana.
   • It would cover 8.7 crore farmers.
4. Cash transfers Under PM Garib Kalyan Yojana:
   1. Help to Poor: A total of 20.40 crores PMJDY women account-holders would be given an ex-gratia of Rs 500 per month for next three months.
   2. Gas cylinders: Under PM Garib Kalyan Yojana, gas cylinders, free of cost, would be provided to 8 crore poor families for the next three months.
   3. Help to low wage earners in organised sectors:
      • Wage-earners below Rs 15,000 per month in businesses having less than 100 workers are at risk of losing their employment.
      • Under this package, government proposes to pay 24 percent of their monthly wages into their PF accounts for next three months.
      • This would prevent disruption in their employment.
   4. Support for senior citizens (above 60 years), widows and Divyaang:
      • There are around 3 crore aged widows and people in Divyaang category who are vulnerable due to economic disruption caused by COVID-19.
      • Government will give them Rs 1,000 to tide over difficulties during next three months.
   5. MNREGA
      • Under PM Garib Kalyan Yojana, MNREGA wages would be increased by Rs 20 with effect from 1 April, 2020. Wage increase under MNREGA will provide an additional Rs 2,000 benefit annually to a worker.
      • This will benefit approximately 13.62 crore families.
5. Self-Help groups:
   1. Women organised through 63 lakhs Self Help Groups (SHGs) support 6.85 crore households.
   2. Limit of collateral free lending would be increased from Rs 10 to Rs 20 lakhs.
6. Other components of PM Garib Kalyan package
   1. Organised sector:
      • Employees’ Provident Fund Regulations will be amended to include Pandemic as the reason to allow non-refundable advance of 75 percent of the amount or three months of the wages, whichever is lower, from their accounts.
      • Families of four crore workers registered under EPF can take benefit of this window.
   2. Building and Other Construction Workers Welfare Fund:
      • Welfare Fund for Building and Other Constructions Workers has been created under a Central Government Act.
      • There are around 3.5 Crore registered workers in the Fund.
      • State Governments will be given directions to utilise this fund to provide assistance and support to these workers to protect them against economic disruptions.
   3. District Mineral Fund
      • The State Government will be asked to utilise the funds available under District Mineral Fund (DMF) for supplementing and augmenting facilities of medical testing, screening and other requirements in connection with preventing the spread of CVID-19 pandemic as well as treating the patients affected with this pandemic.