New Delhi: The Union Cabinet, presided over by Prime Minister Narendra Modi, on Wednesday (December 9) approved Rs 22,810 crore outlay for Atmanirbhar Bharat Rojgar Yojana that aims at encouraging businesses to do fresh hiring. The scheme is likely to benefit around 58.5 lakh employees.
Under the employment scheme, 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 in a cabinet briefing.
Notably, the ABRY would boost employment in the formal sector and incentivize the creation of new employment opportunities during the Covid recovery phase under Atmanirbhar Bharat Package 3.0.
Cabinet has 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, according to the Ministry of Labour and Employment.
Salient features of ABRY are:
1. The government will provide subsidy for two years in respect of new employees engaged on or after 1st October 2020 and up to 30th June 2021
2. The government will pay both 12% employees’ contribution and 12% employers’ contribution i.e. 24% of wages towards EPF in respect of new employees in establishments employing up to 1000 employees for two years
3. The government will pay only employees’ share of EPF contribution i.e. 12% of wages in respect of new employees in establishments employing more than 1000 employees for two years.
3. 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 1st October 2020 will be eligible for the benefit.
4. 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 March 1, 2020, to September 30, 2020, and did not join employment in any EPF covered establishment up to September 30, 2020, will also be eligible to avail benefit.
5. EPFO will credit the contribution in the Aadhaar seeded account of members in an electronic manner.
6. EPFO shall develop software for the scheme and also develop a procedure that is transparent and accountable at their end.
7. EPFO shall work out modality to ensure that there is no overlapping of benefits provided under ABRY with any other scheme implemented by EPFO.