Welcome back to the Labour Law Advisor blog! In this post, we will be talking about a very interesting new scheme devised by the Central Government. This scheme is the Pradhan Mantri Rojgar Protsahan Yojana, or the PMRPY, 2016. This is especially important for industrialists, factory workers, and businessmen who are covered under the EPF Act.
The Central Government launched the PMRPY in August 2016, and it aims to promote the hiring of new talent or ‘Rojgar Protsahan’. In essence, it is a scheme that benefits employers in the hiring of new employees.
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Benefits
The PMRPY benefits employers by reducing their EPF expenses. If you recall the EPF Act, both the employee and employer each deposit 12% of the wages into the employee’s EPF account. The employer’s share is split into 2 parts- the EPF account and the EPS account. 8.33% of the wages go to the EPS account, while 3.67% goes to the EPF account.
Under this scheme, the employer benefits by hiring new employees. For any new employee in this scheme, the Central Government pays 8.33% of the employer’s share into the EPS account.
Eligibility Under the PMRPY
- This is only eligible for semi-skilled and unskilled labour.
- The maximum salary of the employee must be INR 15,000.
- The employee must be covered under the EPF Act.
- Employees must have a UAN (Universal Account Number).
- The employee must have a valid Aadhar card.
- Employees should’ve joined on or after April 2016.
- The employee must not have any past UAN or EPF registration.
Basically, the PMRPY is applicable for the hiring of fresh talent into companies.
How to sign up for the PMRPY?
- To avail of the benefit, the employer must have a Labour Identification Number(LIN), which can be obtained on the LIN website.
- Register your company on the Pradhan Mantri Rojgar Protsahan Yojana website.
- Register your employee on the portal, by verifying the Aadhar details and providing a digital signature.
Now, on checking the EPF challan of the employee, the 8.33% part will automatically show up as filled. This indicates that the Central Government has already paid this amount.
IMPORTANT: For the PMRPY Act to be valid, you must pay your PF amount by the 10th of the next month. For example, if I am paying the PF amount for April, then I must pay before May 10th for this scheme to benefit me.
Still confused? Check out this video by Labour Law Advisor –
We genuinely hope you have learned something new from our blog, and stay tuned for more informative blog posts.
P.I. Jain and Company serves more than 500 companies across India and helps them with their payroll processing needs and EPF consultancy.
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