29.6 C
Jaipur
Monday, June 21, 2021
Home EPF ADVISOR Atmanirbhar Bharat Rozgar Yojana

Atmanirbhar Bharat Rozgar Yojana

Amidst the Covid-19 pandemic, which has led to many job losses and business shut downs, the government brought about a new sigh of relief with the Atmanirbhar Bharat Rozgar Yojana. This article details the minutiae of this new scheme.

What is the Atmanirbhar Bharat Rozgar Yojana?

Atmanirbhar Bharat Rozgar Yojana was launched on 12th November 2020 by Finance Minister, Nirmala Sitharaman. It is an employment generation scheme, offering provident fund subsidies to employers for hiring new workers and those who lost their job during the ongoing Covid-19 pandemic. Under this scheme, the government will provide subsidy for 2 years. It expects to overall cover 65% of workers in the formal sector of the employment force. 

Purpose of Atmanirbhar Bharat Rozgar Yojana?

This new scheme is set to incentivize creation of new job opportunities in the Covid-19 pandemic scenario where several people lost their livelihood. As a part of the ongoing recovery phase, to also help the economy bounce back, the Central Government of India will provide subsidy for two years to new eligible employees who are hired on or after 1st October 2020. The scheme will be operational until 30th June 2021.

What are the benefits under Atmanirbhar Bharat Rozgar Yojana?

Under the Atmanirbhar Bharat Rozgar Yojana, 

  • For establishments with less than 1000 employees – the government will pay 12% employee’s share as well as 12% employer’s share of PF. This will cover about 95% of all establishments in India.
  • For establishments with more than 1000 employees – the government will pay only 12% employer’s share of PF.

The Central Government will give subsidy for 2 years for new eligible employment between October 2020 to June 2021.

Atmanirbhar Bharat Rozgar Yojana

Who will benefit under ABR yojana?

This benefit will go to new employees who are joining employment in EPFO registered establishments with monthly wages of less than Rs 15,000 during the valid period of the scheme. 

Additionally, old PF members who were earning less than Rs 15,000 per month and lost their job between 1st March 2020 and 30th September 2020 due to Covid-19 pandemic, who have now been reemployed on or after 10th October 2020, will also be eligible for this scheme. 

The subsidy report will get credited upfront in Aadhaar-seeded EPFO account (UAN) of eligible new employees.

Who is eligible for the scheme?

Eligibility criteria for establishments for this scheme are as follows:

  • Establishments who are already registered with EPFO, if they add new employees compared to reference base of employees as in September 2020 as under
    • Minimum of two new employees if reference base is 50 employees or less
    • Minimum of five new employees if reference base is more than 50 employees 
  • Establishments registering with EPFO after commencement of the scheme will get subsidy for all its new employees.

Similarity to PMRPY

  • The employment generation scheme is somewhat similar to the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) which was launched in 2016 and was in effect till 31st March 2019 for companies to take benefit.
  • Through the PMRPY, the Central Government paid the employer’s share of worker’s PF contribution for three years.
  • The most important criterion of the PMRPY scheme was that establishments would get support only if they hired new workers who were not a part of EPFO scheme in the past. Compared to that, ABR scheme gives benefits to reemployed PF members as well.
  • Total benefit of Rs 8300 crore was given to 1,52,899 establishments covering 1,21,69,690 beneficiaries under PMRPY scheme.

Learn more about Atmanirbhar Bharat Rozgar Yojana in the video below.

Join the LLA telegram group for frequent updates and documents.
Download the telegram group and search ‘Labour Law Advisor’ or follow the link – t.me/JoinLLA
It’s FREE!

LEAVE A REPLY

Please enter your comment!
Please enter your name here

EPF Advisor

No PF Contribution Without Aadhaar | EPFO Circular 2021

The EPFO released a circular in May 2021 which stated that PF members who do not have their Aadhaar linked to their UAN will...

All About PF EDLI Benefit | Employee Deposit Linked Insurance Scheme

EPF provides free life insurance of up to Rs 7 lakh to all its members. This is known as EDLI. This article lists PF...

Tax On PF Interest | Budget 2021 Update

The Union Budget for financial year 2021-22 was announced on 1st February 2021. So read along to find out the updates relating to tax...

Nomination Form of PF – Offline & Online Nominee Update Process

Employees' Provident Fund or EPF or PF is a financial savings scheme for salaried employees. Under this scheme, employees and their employers contribute a...

Financial Advisor

Tax Planning For HUF (Hindu Undivided Family)

A Hindu Undivided Family (HUF) consists of members of a joint family or a married couple. Moreover, the Hindu Law Board is the governing...

Taxability Of The Dividend – Before & After F.Y.2020-2021

Dividend is basically the portion of profit after tax, which the company distributes to its shareholders. In this blog, we shall discuss the taxability...

Tax Planning For Small Business

In this era, where competition exists at every step, running and managing a business is very difficult. Moreover, complying with the n number of...

Partnership Firms/LLP – Income Tax Point of View

A partnership is a relation between two or more people who agree to share profits of the business carried on by all or anyone...

Follow Us

2,934FansLike
8,729FollowersFollow
1,971FollowersFollow
1,160,000SubscribersSubscribe

Insurance

How To Find The Best Health Insurance Policy?

The insurance market is full of unlimited health insurance options. As such, consumers become confused about how to go about selecting the best health...

Saral Jeevan Bima Yojana | Term Insurance Plan

Term insurance is important life insurance to have, especially if one has others financially dependent on him. But sometimes insurance companies refuse to give...

How to Select the Best Term Insurance Plan

A Term Insurance plan is a kind of life insurance which ensures the policy buyer a large sum of money for his beneficiary, if...

Reality of Money Back Plan, Guaranteed Income, Endowment Plan

There is one plan which is common in all insurance companies but it goes by different names. Guaranteed maturity, guaranteed lifelong income, double income,...

Social Security

The Employee's State insurance (ESI) Act 1948 एक ऐसा अधिनियम है जो फैक्टरियों में काम करने वाले श्रमिकों तथा उनके परिवार को मेडिकल सम्बन्धी...

Don't Miss

Real Meaning of CAGR | Compounding Does Not Exist in Stock Market

Suppose you bought a share in 2015 for Rs 900. That share grew to Rs 1300 in 2016. However, in 2017 it decreased to...

No PF Contribution Without Aadhaar | EPFO Circular 2021

The EPFO released a circular in May 2021 which stated that PF members who do not have their Aadhaar linked to their UAN will...

ESIC Member Benefits For Sickness, Maternity & Covid-19

The Employee State Insurance Corporation Scheme (ESIC) was created by the Government of India, as a means of providing financial protection to members in...

Recent Comments