About the scheme
- Atmanirbhar Bharat Rojgar Yojana (ABRY) under the Ministry of Labour and Employment aims 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.
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 encourage the employers and business establishments to increase the number of workers hired.
- 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.
Why in the news?
- The Union Cabinet has given its approval for extending the terminal date for registration of beneficiaries for availing the benefit under Aatmanirbhar Bharat Rojgar Yojana for another nine months i.e. from 30th June, 2021 to 31st March, 2022.
- Consequent upon this extension, it is expected that 71.8 lakh employment will be generated in the formal sector as against the earlier projection of 58.5 lakh.