Rojgar Protsahan Yojana (PMRPY)

The PMRPY Scheme, initiated by the Ministry of Labour and Employment in August 2016, serves as a means to encourage employers in generating employment. Under this scheme, the government covers the entire 12% Employers Provident Fund (EPS) contribution for new employees during the initial three years of their employment. The scheme primarily targets unemployed individuals with semi-skilled and unskilled backgrounds. It is important to note that the deadline for beneficiary registration under this scheme was March 31, 2019.

About Rojgar Protsahan Yojana

The “Pradhan Mantri Rojgar Protsahan Yojana” (PMRPY) was introduced in the 2016-17 Budget with the objective of promoting the generation of employment.
The Ministry of Labour and Employment is responsible for the implementation of the PMRPY scheme.
Employers in the program get incentives to increase hiring. They get reimbursed for the 8.33% contribution they make to the Employees Pension Scheme (EPS) for new hires.
The PMRPY initiative specifically targets workers earning wages up to Rs. 15,000 per month, aiming to support this particular segment of the workforce.

Objectives of Rojgar Protsahan Yojana

PMRPY encourages EPFO-registered employers to create jobs.
The government provides full contribution to the Employee Pension Scheme (EPS) and Employees Provident Fund (EPF) for new employees with a new Universal Account Number (UAN).
The scheme offers a dual benefit by incentivizing employers to expand their workforce, thereby increasing job opportunities, while simultaneously providing social security benefits to workers in the organized sector.
Employers receive incentives for contributing to the employment growth in their establishments.
A significant positive outcome is the creation of employment opportunities, leading to a larger workforce in various establishments.

Scheme Eligibility

All establishments registered with the Employees Provident Fund Organisation (EPFO) are eligible to apply for benefits under the PMRPY Scheme, provided they meet the following conditions.
Establishments must have a Labour Identification Number (LIN) assigned through the Shram Suvidha Portal, serving as the primary reference for communication related to the scheme.
Eligible employers must have added new employees to their worker reference base from August 2016 onwards to avail benefits.
For instance, if an establishment filed an ECR for 45 employees in March 2016 and added 15 new workers in April 2016, they can apply for PMRPY benefits for these 15 new employees.
A new employee is one who has not worked in any EPFO registered establishment or had a Universal Account Number before April 1, 2016.
After April 1, 2016, establishments registering with EPFO consider the reference base for new employees as Zero/NL employees, allowing eligible new employees to avail PMRPY benefits. Employees with monthly wages below Rs 15,000 are the target of the PMRPY Scheme, while those earning more are ineligible.
Employers receive 12% government contribution for eligible new employees for three years, provided they remain employed with the same employer.
The deadline for registering beneficiaries through establishments under the PMRPY is March 31, 2019.

Duration of the Scheme

The Scheme will operate for a duration of 3 years, with the Government of India committing to covering the full employer contribution during this period.
This means that all eligible new employees will be enrolled in the PMRPY Scheme until the financial year 2019-20.
Throughout the Scheme’s duration, the Government will sustain its support by covering the employer’s contribution for new employees.

Instructions for availing benefits under PMRPY Scheme

The establishment must be registered with EPFO under the EPF Act of 1952 and possess a valid LIN.
The establishment is required to have a valid organizational PAN.
A valid Bank Account in the name of the establishment is mandatory, and the account details must be provided for payment transactions.
Submission of Electronic Challan cum Return (ECR) for the month of March 2016 is a prerequisite.
The establishment should have experienced an increase in the number of employees on or after April 1, 2016.
New establishments registered after April 1, 2016, can cover all new employees, provided they meet the necessary conditions.
The cutoff date for registering beneficiaries through an establishment under the PMRPY is March 31, 2019.

Necessary conditions for eligibility of employees under PMRPY

New employees must have joined the establishment on or after April 1, 2016. They should not have been regular employees in any EPF registered establishment prior to this.

Documentation:

Employers must ensure that new employees have a valid Universal Account Number (UAN) linked with Aadhaar.
EPFO should capture the mobile number and other contact details of the new employees.

Monthly Wage Limit:

The monthly wages of new employees should be less than Rs. 15,000.

EPS Contribution Duration:

The Employee Pension Scheme (EPS) contribution for new employees will be available for 3 years.

Employment Reference Base:

If an establishment experiences a drop or fall in employment from the reference base, it will not be eligible for the scheme in months where employment is below this reference base.

Validation of new employees

The employer is required to upload the ECR file as outlined in the ECR 2.0 specifications.
Along with the ECR file, the employer must provide an online certificate affirming that the submission pertains exclusively to new employees without any prior service history.
Additionally, the certificate should specify that the submission is applicable solely to newly established positions within the organization.

Significance of the Scheme

This initiative results in a significant influx of workers securing employment in these establishments.
A key advantage of this program is that these employed individuals gain access to social security benefits, including Provident Fund, Pension, and Death Linked Insurance.