PMGKY - Pradhan Mantri Garib Kalyan Yojana

The benefits of the package were divided into two parts. They are:

• Food security 
• Direct Benefit Transfer (DBT) 

Food security

As part of food related relief measures, the government announced that around 80 crore people will be receiving 5 kg of rice or wheat along with one kg of preferred pulse every month till the end of November. This benefit will be provided in addition to the 5 kg of rice or wheat already provided every month.  

Direct Benefit Transfer (DBT)  

While under DBT (Direct Benefit Transfer), specific announcements were made by the Finance Minister. 

1. Benefit to farmers: Farmers will be provided an additional amount of Rs.2,000 by the government as front-load under the Kisan Samman Nidhi program.  
2. Increase in daily wage: The daily wage of workers under MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) has been increased to Rs.202 for the next 100 days. It is expected to benefit 5 crore families.  
3. Ex-gratia of Rs.1,000: The government will be providing 3 crore poor senior citizens, disabled persons and widows ex-gratia of Rs.1,000 over three months. 
4. Free LPG cylinders: Free LPG cylinders will be provided for the next three months to 8.3 crore BPL families that hold LPG connections under the Ujjwala scheme. 
5. Ex-gratia for women account holders: 20 crore women account holders under the Jan Dhan Yojana Scheme will be receiving ex-gratia amount of Rs.500 for the next three months.  

1. Avail collateral-free loans: Under National Rural Livelihood Mission (NRLM), 63 lakh women Self-Help Groups (SHGs) will be able to avail collateral-free loans up to Rs.20 lakh. 
2. EPF benefit for workers from the organized sector: For the next three months, the Government will pay the EPF contribution for both employer and employee (12% each). Establishments which have employees up to 100 with 90% of them drawing a salary below Rs.15,000 per month will be benefited from the move. 
3. The government also amended regulations of EPFO to allow employees avail non-refundable advance of three months' salary, or 75% of the total fund, whichever is lower. 

1. Utilization of welfare and district mineral fund: The government has directed state governments to utilise the welfare fund and district mineral fund. While the welfare fund is being asked to protect the construction workers, the district mineral fund is to be used for screening, testing, and other requirements in order to combat COVID-19. 
2. Financial assistance to wage workers: For the next three months, workers who earn less than Rs.15,000 per month in businesses with fewer than 100 workers will get 24% of their monthly pay deposited into their PF accounts.
3. Financial assistance to construction and building workers:  The Central Government will offer protection to nearly 3.5 crore registered workers against economic disruptions through a fund of Rs.31,000.