Atmanirbhar Bharat Rozgar Yojana: FM announces benefits for EPFO-registered firms hiring new employees — centre to bear PF for new employees
- Under the
Atmanirbhar Bharat Rozgar Yojana scheme, the central government will provide subsidy for new employees in establishments up to 1000 employees.
- The PF amount will be credited upfront in the Aadhaar-seeded EPFO accounts of the eligible new employee, said India’s
Finance MinisterNirmala Sitharaman.
- Here’s the eligibility criteria for companies to avail benefits under this scheme
The announcement came as a part of the third stimulus package aimed at helping the COVID hit Indian economy.
The finance minister said under this scheme, every establishment that is registered with the EPFO will be incentivised to hire people who were not registered with EPFO earlier as well as those who lost their jobs between March 1, 2020 to September 30, 2020. Under the scheme, the central government will give a subsidy for new employees for establishments with up to 1000 employees.
The PF amount will be credited upfront in the Aadhaar-seeded EPFO accounts of the eligible new employee, Sitharaman said.
Who will be benefited by this?
- Any new employee joining employment in the EPFO registered establishments with monthly wages less than ₹15,000.
- EPFO members drawing monthly wages of less than ₹15,000 who exited employment during COVID pandemic from March 1 to September 30 and had been hired on or after October 1, 2020.
The central government will give the subsidy for two years in respect of new eligible employees engaged on or after October 1 at the following scale.
- Establishments employing up to 1,000 employees will get a contribution of 12% of employee wages and 12% as employers contributions, totalling up to 24% of wages.
- And, for establishments employing over 1000 employees, only 12% of wages of the employees will be given.
To avail benefits under this scheme, the organisations with fewer than 50 employees will have to hire at least two employees, and those with more than 50 employees will have to hire five or more employees.
"A large number of organizations have put off their hiring plans this year because they are wary of taking up fresh monetary commitments. The government's pledge to bear the EPFO contributions of new employees will encourage many organizations to resurrect their recruitment plans,"Vivek Bindra, founder of New Delhi-based Bada Business.
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