Mandatory Declaration of Gross Wages in ECR for ELI Scheme

🔍 Background

The Employees’ Provident Fund Organisation (EPFO), under the Ministry of Labour & Employment, has issued a new circular instructing all employers to furnish accurate Gross Wages in the Electronic Challan-cum-Return (ECR) from the wage month of August 2025 onwards. This is directly linked to the implementation of the Employment Linked Incentive (ELI) Scheme.

🎯 Objective of the Circular

To ensure only eligible employees (earning up to ₹1,00,000 per month) are considered under the ELI Scheme, accurate wage declaration is crucial. Any incorrect reporting may result in:

💼 What is the ELI Scheme?

The Employment Linked Incentive Scheme is a government initiative aimed at:

👉 Eligibility Condition (Key Point):

Employees must earn Gross Wages ≤ ₹1,00,000/month to be considered under the scheme.

📝 Key Directions from the Circular

1. From August 2025 wage month, employers must report accurate gross wages in the relevant field of the ECR.

2. This data will be used to verify eligibility under the ELI Scheme.

3. All EPFO Regional/Zonal/District Offices are instructed to publicize this compliance requirement widely.

4. Non-compliance may result in loss of incentive and potential regulatory actions.

📢 Action Points for Employers

✅ Ensure payroll systems capture accurate gross wages (including Basic + DA + Other Allowances).

✅ Update ECR filing process to correctly populate gross wage fields.

✅ Train HR & payroll staff on this circular and cross-verify uploaded data.

✅ Maintain documentary evidence of wages declared in ECR for future reference/audits.

📍 Why It Matters?

• With gross wages as the determining factor, employers must avoid underreporting or clubbing partial wages.

• Accurate reporting will safeguard incentives, and ensure compliance with EPFO norms.

• A step towards transparency and targeted subsidy delivery under the ELI Scheme.

📄 Legal Reference

📌 Circular No.: ELI/GrossWagesinECR/2025/E-1132964

📌 Date: 22nd July 2025

📌 Issued by: Head Office, EPFO, New Delhi

📌 Effective From: Wage Month August 2025