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Govt to spend ₹22,810 cr on Atmanirbhar Bharat Rozgar Yojana, to benefit over 58 lakh employees

On Wednesday, the Union Cabinet approved the earlier announced private EPF scheme, Atmanirbhar Bharat Rozgar Yojana, at an expenditure of Rs 1,584 crore for the current fiscal year, said Labour Minister Santosh Gangwar.

Labour Minister Santosh Gangwar said that, under the leadership of Atmanirbhar Bharat Rojgar Yojana, the government will provide employee and employer contribution to the retirement fund for new hires by businesses and entities

The scheme would till 2023 entail an outgo of 22,810 crore and would benefit around 58.5 lakh employees.

Here are five things to know about Atmanirbhar Bharat Rozgar Yojana scheme:

Employers registered in EPFO will be covered if they add new employees compared to the employee reference rule compared to September 2020, if they add a minimum of two new employees if the reference rule is 50 employees or less. If the baseline is more than 50, organizations must add at least five new employees to be covered by the system.

Atmanirbhar Bharat Rozgar Yojana,EPF scheme,stimulus package 3.0

If new employees of the required number are appointed from October 1, 2020 to June 30, 2021, the facilities will be covered for the next two years.

Employees entering work will be covered with monthly salaries of less than ₹ 15,000 under the system.

Any EPF member with a UAN earning a monthly salary of less than $ 15,000, who was out of work during the Covid pandemic from March 1 to September 30, and did not join any work in any organization covered by EPF until September 30 will be too, the ministry said Eligible for benefits.

Under the plan, the central government will provide a subsidy through contributions from the European Monetary Fund over a period of two years in relation to new qualified employees. Support will be added in advance on Aadhaar rated EPFO accounts. For companies employing up to 1,000 employees, the employee contribution (12% of salary) and employer contributions (12% of salary), totaling 24% of salary, will be provided by the central government. In companies with more than 1,000 employees, the central government will only contribute contributions to the fund (12% of the salaries of the trust fund).

EPFO will credit the contribution in Aadhaar seeded account of members in electronic manner. EPFO is required to develop a program for the scheme and also develop a procedure that is transparent and accountable in the end. The fund must work on a method to ensure that the benefits provided by ABRY do not overlap with any other scheme implemented by the EPFO.

Also Read: Top 10 Business Ideas for Introverts

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