The Central Government on 12th November, 2020 had announced an employment generation scheme known as “Atmanirbhar Bharat Rozgar Yojana”, offering provident Fund subsidies to Employers for hiring new workers and also for those who have lost job during the ongoing COVID-19 pandemic.
The highlights of the scheme are as follows:
The Aatma Nirbhar Bharat Rozgar Yojana will cover establishments registered with EPFO if they add new employees from October 2020 to June 2021 for the first time on monthly wage of less than Rs. 15,000 and will be eligible to get the benefit.
- Employees contribution (12%) and Employer’s contribution (12%) totaling 24% of wages will be provided for two years.
- It will cover all establishments with maximum of 1000 workers.
- The reference base of employees will be as in September 2020
- The scheme will also cover EPF members drawing
monthly wages of less than Rs. 15,000, who made an exit from employment during COVID-19 pandemic from 1st March, 2020 and is employed on or after 1st October, 2020.
- The condition will be adding a minimum of two new employees for establishments with up to 50 employees.
- Those establishments with more than 50 employees, will have to give a minimum of five new jobs.
- The employees share will be credited into Aadhaar-seeded EPFO account of eligible employees.
- However, establishments with more than 1,000 workers will also be entitled for subsidy towards the employer’s share.
This scheme is made applicable till 30 June, 2021.