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The Burning Tale
Atmanirbhar Bharat Rozgar Yojana
Union Finance Minister Nirmala Sitharaman announced an employment generation scheme as a part of the Atmanirbhar Bharat Package 3.0, on 12 November, 2020. Under the scheme, the government will give subsidy to establishments for new hirings. The subsidy would be to cover for provident fund contributions by employees as well as employers for two years. The government expects to cover about 65% of the workers in the formal sector.
Who will benefit?
1. New employees who enrol between October 1, 2020, and till June 30, 2021, will get the benefits under the scheme for a period of two years.
2. EPF members drawing a monthly wage of Rs.15000/- who made exit from employment during Covid-19 pandemic from 01.03.2020 to 30.09.2020 and are employed on or after 01 October 2020.
Eligibility Criteria for Establishments
1.Establishments with less than 50 employees must recruit at least two new employees and organisations with more than 50 employees must employ at least five new employees.
2. New organizations which register with EPFO after the commencement of the scheme to get subsidy for all new employees.
The Employee or Employer may lose the benefit in case they don’t meet the condition. In the case of a Contractor, who will get the benefit for the employer?
The Contractor who is engaging the worker/employee, or Principal Employer, as he is reimbursing the same to the Contractor. The same challenge was faced during the PMRPY scheme. Other conditions may be due date remittance months only will be considered for benefit.
Bonus: We have made a detailed video about the Atmanirbhar Bharat Rozgar Yojana Scheme. Click here to watch the video.