Under the scheme, the central govt. will give subsidy by way of EPF contributions for two years in respect of new eligible employees, subject to some conditions
To promote job creation, Finance Minister Nirmala Sitharaman today announced Atmanirbhar Bharat Rozgar Yojana under which EPFO-registered establishment will get subsidy for all new employees, subject to some conditions. The scheme will be operational till 30th June 2021.
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.
Every EPFO-registered organizations - if they take in new employees or those who had lost jobs between 1 March 1 and Sept 30 - these employees will get benefits.
Under the scheme, the central govt. 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), totaling 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.