The Ministry of Labour and Employment (“Ministry”) has issued a Press Release informing that Aatmanirbhar Bharat Rozgar Yojana (“Scheme”) has been launched with a view to incentivize employers for the purpose of creation of new employment along with other social security benefits such as restoration of loss of employment during COVID-19 pandemic.
Key Highlights of the Scheme are-
• An employee drawing monthly wage of less than Rs. 15000/- who was not working in any establishment registered with the Employees’ Provident Fund Organization (“EPFO”) before 1st October, 2020 and did not have a Universal Account Number or EPF Member account number prior to 1st October 2020 is 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 is also eligible to avail benefit.
The scheme aims to reduce the financial burden of the employers and encourages them to hire more workers. Further, the Ministry has informed that under the scheme, the Government of India has credited for a period of two years, both the employees’ share (12% of wages) and employers’ share (12% of wages) of contribution payable to the EPFO registered establishments.
The scheme has gained effect from 1st October 2020 and will remain open for registration of eligible employers and new employees upto 30th June 2021. Government will pay the subsidy for two years from the date of registration.
Source: Press Information Bureau
