Context
The Union Cabinet has given its approval for Atmanirbhar Bharat Rojgar Yojana (ABRY).
What is the aim of the initiative?
- It aims to 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.
What are the features of the Scheme?
The salient features of the Scheme are as under:
- The government will provide subsidy for two years in respect of new employees engaged on or after 1stOctober 2020 and up to 30th June 2021
- 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.
- The government of India 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.
- An employee drawing a 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 before 1st October 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 the Aadhaar seeded account of members in an electronic manner.
- EPFO shall develop software for the scheme.
