Why in News?

• The Union Cabinet has given its approval for Atmanirbhar Bharat Rojgar Yojana (ABRY) to boost employment in the formal sector and incentivize creation of new employment opportunities during the Covid recovery phase under Atmanirbhar Bharat Package 3.0.
• It is aimed at incentivising the creation of new employment opportunities during the Covid-19 economic recovery phase.

The salient features of the Scheme are as under:

• The Government of India will provide subsidy for two years in respect of new employees engaged on or after 1st October, 2020 and upto 30th June, 2021.
• The Government of India will pay both 12% employees’ contribution and 12% employers’ contribution i.e. 24% of wages towards Employees’ Provident Fund (EPF) in respect of new employees in establishments employing upto 1000 employees for two years.
• The Government of India will pay only employees’ share of EPF contribution i.e. 12% of wages in respect of new employees in establishments employing more than 1000 employees for two years.
• An employee drawing monthly wage of less than Rs. 15000/- who was not working in any establishment registered with the Employees’ Provident Fund Organisation (EPFO) before 1st October, 2020 and did not have a Universal Account Number or EPF Member account number prior to 1st October 2020 will be 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 will also be eligible to avail benefit.

Purpose of the scheme

• The scheme is expected to provide dual benefit. While on one hand, the scheme is expected to encourage the employers and business establishments to increase the number of workers hired, on the other hand, the scheme will help a large number of job seekers find employment in EPFO-registered establishments. 
• 99.1 percent of the establishments will be covered under this scheme and 65 percent of all employees in the formal sector are estimated to be covered, wherein EPF contributions will be given by the government by way of subsidy support.

References:

1. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1679337
2. https://www.moneycontrol.com/news/economy/policy/explained-all-you-need-to-know-about-the-aatmanirbhar-bharat-rozgar-yojana-6115561.html