The government on Thursday (12 November) announced the launch of a new job scheme called Aatmanirbhar Bharat Rozgar Yojana to incetivise job creation during the Covid-19 recovery phase.
The scheme will be applicable to EPFO registered establishments if they take in new employees or those who lost jobs earlier. It is effective from 1 October 2020.
The beneficiaries (new employees) under the scheme include:
Any new employee joining employment in EPFO registered establishments on monthly wages less than Rs 15,000.
EPF members drawing monthly wage of less than Rs 15,000 who made exit from employment during covid-19 pandemic from 1 March 2020 to 30 September 2020, and is employed on or after 1 October 2020.
The eligibility criteria for establishments to avail the benefits of the scheme are:
Establishments registered with EPFO if they add new employees compared to reference base of employees as in September 2020 as under:
Minimum of two new employees if the reference base is 50 employees or less.
Minimum of five new employees if the reference base is more than 50 employees.
2. Establishments registering with EPFO after the commencement of scheme to get subsidy for all new employees.
3. Scheme to be operational till 30 June 2021.
Central government will give subsidy by way of EPF contributions for two years in respect of new eligible employees at:
Establishment employing up to 1,000 employees: Employee's contribution (12 per cent of wages) and employer's contribution (12% of wages) totalling 24 per cent of wages.
Establishments employing more than 1,000 employees: Only employee's EPF contributions (12 per cent of EPF wages)
Subsidy will be credited upfront in Aadhaar-seeded EPFO accounts of the eligible new employee.
Finance Minister Nirmala Sitharaman said that more than 95 per cent of all establishments and 65 per cent of all employees in formal sector are estimated to be covered in first category, wherein EPF contributions will be given by government by way of subsidy support.
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