Atmanirbhar Bharat RojgarYojna
Union Ministry of Labour and Employment has issued guidelines for the AatmaNirbhar Bharat Rozgar Yojana, clarifying that the government would only contribute to new employees earning up to Rs 15,000 a month as defined under the Employees Provident Fund & Miscellaneous Provisions Act.
The scheme was announced in November 2020 to incentivise formal job creation in the country and subsequently approved by the Cabinet in the early December of the same year.
About the Scheme
What does it offer?
Under the scheme, govt will give subsidy to establishments for new hiring. The subsidy would be to cover for provident fund contributions by employees as well as employers for two years.
The organisations of up to 1000 employees would receive employee’s contribution (12 per cent of wages) & employer’s contributions (12 per cent of wages), totalling 24 per cent of wages, for two years. Employers with over 1,000 employees will get employees’ EPF contribution of 12 per cent from the central government. The subsidy support will be credited upfront in Aadhar seeded EPFO account (UAN) of an eligible new employee.
Eligibility criteria for establishments
• Establishments registered with EPFO will be eligible for the benefits if they add new employees compared to reference base of employees as in September 2020. In order to avail the benefits, establishments, with up to 50 employees, would have to add a minimum of two new employees. The organisations, with more than 50 employees, would have to add at least five employees to avail the benefits. The establishments registering with EPFO after the commencement of scheme will get subsidy for all new employees and the scheme will remain operational till June 30, 2021.
• EPFO will credit the contribution in Aadhaar seeded account of members in electronic manner. EPFO shall develop a software for the scheme and also develop a procedure which is transparent and accountable at their end. The fund shall work out modality to ensure that there is no overlapping of benefits provided under ABRY with any other scheme implemented by EPFO.