Srinagar, Dec 09 (KINS): The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval for Atmanirbhar Bharat Rojgar Yojana (ABRY) to boost employment in the formal sector and incentivize creation of new employment opportunities during the Covid recovery phase under Atmanirbhar Bharat Package 3.0.
Cabinet has approved an expenditure of Rs 1,584 crore for the current financial year and Rs 22,810 crore for the entire Scheme period i.e. 2020-2023.
With this scheme, the government aims to incentivise the creation of new employment opportunities. Centre will provide a subsidy for 2 years for new employees. This means for establishments with up to 1,000 employees, if they hire new employees at less than Rs 15,000 per month salary then the centre will take care of the EPF contribution of both the employee (12%) & the employer (12%). For establishments with more than 1,000 employees, the Centre will support employee’s EPF contribution only (12%).
Beneficiaries (new employees) under Scheme:
Any new employee joining employment in EPFO registered establishments on monthly wages less than Rs 15,000.
EPF members drawing monthly wages of less than Rs 15,000 who made exit from employment during covid-19 pandemic from March 1, 2020, to September 30, 2020, and are employed on or after October 1, 2020.
Salient features of the Scheme are as under:
Government of India will provide subsidy for two years in respect of new employees engaged on or after 1st October 2020 and up to 30th June 2021
Government of India will pay both 12% employees’ contribution and 12% employers’ contribution i.e. 24% of wages towards EPF in respect of new employees in establishments employing up to 1000 employees for two years
The Government of India will pay only employees’ share of EPF contribution i.e. 12% of wages in respect of new employees in establishments employing more than 1000 employees for two years.
An employee drawing monthly wage of less than Rs 15000 who was not working in any establishment registered with the Employees’ Provident Fund Organisation (EPFO) before 1st October 2020 and did not have a Universal Account Number or EPF Member account number prior to 1st October 2020 will be eligible for the benefit
Any EPF member possessing Universal Account Number (UAN) drawing monthly wage of less than Rs 15000 who made exit from employment during Covid pandemic from March 1, 2020, to September 30, 2020, and did not join employment in any EPF covered establishment up to September 30 will also be eligible to avail benefit
EPFO will credit the contribution in Aadhaar seeded account of members in an electronic manner. EPFO will develop software for the scheme and also develop a procedure which is transparent and accountable at their end. The organisation shall work out modality to ensure that there is no overlapping of benefits provided under ABRY with any other scheme implemented by EPFO.
Last month, FM informed that more than 95% of all establishments and 65% of all employees in the formal sector are estimated to be covered in the first category, wherein EPF contributions will be given by govt. by way of subsidy support
It is worth adding that earlier this year, the Prime Minister’s Rozgar Protsahan Yojana (PMRPY) was implemented up to March 31, 2019, to incentivize formalisation and creation of new employment. Under this scheme, the total benefit of Rs 8,300 crore has been given to 1,52,899 establishments covering 1,21,69,960 beneficiaries. (KINS)
