Under the Atmanirbhar Bharat Rojgar Yojana, the government will for two years provide employee and employer contribution to the retirement fund for new hires by businesses and entities
The Union Cabinet on Wednesday approved the earlier announced special EPF scheme, Atmanirbhar Bharat Rozgar Yojana at an expenditure of ₹1,584 crore for the current financial year, said Labour Minister Santosh Gangwar.
Under the Atmanirbhar Bharat Rojgar Yojana, the government will for two years provide employee and employer contribution to the retirement fund for new hires by businesses and entities, Labour Minister Santosh Gangwar said.
The scheme would till 2023 entail an outgo of ₹22,810 crore and would benefit around 58.5 lakh employees.
Here are five things to know about the Atmanirbhar Bharat Rozgar Yojana scheme:
EPFO-registered employers if they add new employees compared to reference base of employees as compared to September 2020 will be covered under the scheme if they add minimum of two new employees if reference base if 50 employees or less. If reference base if more than 50, establishments have to add minimum of five new employees to get covered under the scheme.
If new employees of requisite number are recruited from October 1, 2020 to June 30, 2021, the establishments will be covered for the next two years.
Employees joining employment with monthly wages less than ₹15,000 will be covered under the scheme.
Any EPF member possessing Universal Account Number (UAN) drawing monthly wage of less than ₹15000, who made exit from employment during Covid pandemic from 1 March to 30 September and did not join employment in any EPF covered establishment up to 30 September will also be eligible to avail benefit, the ministry said.
Under the scheme, the central government will give subsidy by way of EPF contributions for two years in respect of new eligible employees. Subsidy will be credited upfront in Aadhaar-seeded EPFO accounts. For establishments employing up to 1,000 employees, employee's contribution (12% of wages) and employer's contributions (12% of wages), totalling 24% of wages, will be contribute by central govt. Establishments employing more than 1000 employees, only employee's EPF contributions (12% of EPF wages) will be contributed by central government.
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.
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