About the scheme
- The Ministry of Labour & Employment is implementing “Pradhan Mantri Rojgar Protsahan Yojana” (PMRPY) since 2016 with the objective to incentivise employers for creation of new employment and also aimed to bring informal workers to the formal workforce.
- Under the scheme, Government of India is paying Employer’s full contribution i.e. 12% towards Employees’ Provident Fund (EPF) and Employees’ Pension Scheme (EPS) both (as admissible from time to time) for a period of three years to the new employees through Employees’ Provident Fund Organisation (EPFO).
- The terminal date for registration of beneficiaries through establishment was 31st March 2019.
- The beneficiaries registered upto 31st March, 2019 will continue to receive the benefits for 3 years from the date of registration under the scheme.
- New employees should have joined in the establishment on or after 01.04.2016 and should not have been a regular employee in any EPF registered establishment prior to this.
- Employers should ensure that the new employee has a valid UAN which is Aadhaar linked.
- The monthly wages of the new employee should be less than Rs. 15,000
- The EPS contribution for the new employee will be available for 3 years.
Significance of the scheme
- The employer is incentivised for increasing the employment base of workers in the establishment.
- A large number of workers will find jobs in such establishments.
- A direct benefit is that these workers will have access to social security benefits of the organized sector.
Why in the news?
The Minister of State (I/C) for Labour & Employment mentioned about PMRPY in Rajya Sabha recently.