Team News Riveting
The Union Cabinet on Wednesday approved the special employees’ provident fund (EPF) scheme, Atmanirbhar Bharat Rozgar Yojana, to boost employment in formal sector and incentivize creation of new employment opportunities during the Covid recovery phase under Atmanirbhar Bharat Package 3.0.
Under the Atmanirbhar Bharat Rojgar Yojana, the government would provide for two years 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 Rs 22,810 crore and would benefit around 58.5 lakh employees. Cabinet has approved an expenditure of Rs. 1,584 crore for the current financial year.
The salient features of the scheme include subsidy for two years in respect of new employees engaged on or after 1st October, 2020 and upto 30th June, 2021. The Government of India would pay both 12 per cent employees’ contribution and 12 per cent employers’ contribution, 24 per cent of wages towards EPF in respect of new employees in establishments employing upto 1000 employees for two years.
The Government of India would pay only employees’ share of EPF contribution i.e. 12 per cent 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 1stOctober 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 01.03.2020 to 30.09.2020 and did not join employment in any EPF covered establishment up to 30.09.2020 will also be eligible to avail benefit.
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.
EPFO shall work out modality to ensure that there is no overlapping of benefits provided under ABRY with any other scheme implemented by EPFO.
