Modi Govt Rolls Out Rs 22,810 Crore Wage Subsidy Scheme Via EPFO, To Pay Both Employer-Employee PF Contribution For New Hires
The Union Cabinet today (9 December) approved the Atmanirbhar Bharat Rojgar Yojana (ABRY) that aims to boost employment in the formal sector and incentivise the creation of new employment opportunities by providing a wage subsidy for two years with respect to new employees hired between 1 October 2020 and 30 June 2021.
The Union Cabinet approved an expenditure of Rs 1,584 crore for the current financial year and Rs 22,810 crore for the entire scheme period i.e. 2020-2023.
Under this scheme, Government of India will provide subsidy for two years with regards to new employees hired on or after 1 October 2020 and up to 30 June 2021.
The government will pay both the 12 per cent employees' contribution and 12 per cent employers' contribution i.e. 24 per cent of wages towards EPF of new employees in establishments employing up to 1,000 employees for two years.
The government will however pay only employees' share of EPF contribution i.e. 12 per cent of wages in respect of new employees in establishments employing more than 1,000 employee for two years.
Under the scheme, an employee drawing a monthly wage of less than Rs 15,000 and not working in any establishment registered with the Employees’ Provident Fund Organisation (EPFO) before 1 October 2020 and not having a Universal Account Number or EPF Member account number prior to 1 October 2020 will be eligible for the benefit.
Any EPF member possessing Universal Account Number (UAN) drawing monthly wage of less than Rs 15,000 who made exit from employment during the Covid-19 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 EPFO will electronically credit the contribution in Aadhaar seeded account of members and will develop a software for the scheme and a procedure which is transparent and accountable at their end.
EPFO will also 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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