The government is rolling out the “Atmanirbhar Bharat Rozgar Yojana” to give a helping hand to folks finding work in the formal sector and to encourage the birth of fresh job opportunities as we navigate through the Covid aftermath under the Atmanirbhar Bharat Package 3.0. This plan will be up and running from 2020 all the way through 2023.
Background
The Union Cabinet has given the green light to the Atmanirbhar Bharat Rojgar Yojana (ABRY) to ramp up job opportunities in the formal sector and encourage the creation of new employment during the post-Covid recovery period as part of the Atmanirbhar Bharat Package 3.0.
About the Atmanirbhar Bharat Rojgar Yojana
- Starting from October 1, 2020, until June 30, 2021, the Government of India will offer subsidies for newly hired employees.
- For establishments with up to 1000 employees, the government will cover both the employee’s and employer’s contributions to the Employee Provident Fund (EPF), which amounts to 24% of the employee’s wages, for a period of two years.
- For larger establishments with more than 1000 employees, the government will cover only the employee’s contribution, which is 12% of the employee’s wages, towards EPF for a duration of two years.
Achievements
- It has helped formalise informal employment and create new employment opportunities during and post Covid-19 pandemic.
- It reduces the financial burden of the employers of various sectors/industries and encourages them to hire more workers.
Features
- The Government of India, under ABRY (Atmanirbhar Bharat Rojgar Yojana), is offering financial support for a duration of two years to both employees and employers. This includes covering the employees’ share (12% of wages) and the employers’ share (12% of wages) of contribution payable to the EPFO (Employees Provident Fund Organization).
- The scheme extends benefits to all establishments registered with EPFO, along with their new employees earning less than Rs. 15,000 per month. This applies to establishments hiring new staff from October 1, 2020, to June 30, 2021, or those who lost their jobs between March 1, 2020, and September 30, 2020.
- Individuals registered for ABRY benefits by March 31, 2022, will receive support for a period of two years from their registration date under the scheme.
Benefits
- The Government of India has announced a subsidy program aimed at supporting new employees hired between October 1, 2020, and June 30, 2021.
- For establishments with up to 1000 employees: Both the employee’s and employer’s contributions, totaling 24% of the employee’s wages, will be subsidized.
- For establishments with more than 1000 employees: Only the employee’s EPF (Employee Provident Fund) contributions, which constitute 12% of their wages, will be subsidized.
- We’ll deposit the subsidy support directly into the Aadhaar-linked EPFO Account (Universal Account Number – UAN) of eligible new employees upfront.
Read Also: An Atmanirbhar Move
