IBEF: November 13, 2020
The government has implemented Atma Nirbhar Bharat Rozgar Yojana to promote job creation in the country in a significant boost to employment opportunities in the private sector after the pandemic.
Under the scheme, any registered corporation under the Employees’ Provident Fund Organization that introduces new employees into its fold or rejoins employees who have lost employment between March 1, 2020 and September 30, 2020 will be eligible for a grant of 24% or 12% each of the contribution of employees and employers for each new registered applicant.
New candidates who joining between 1 October 2020 and 30 June 2021 can obtaining financing for a period of two years under the scheme.
Establishments of less than 50 employees are required to hire at least two new employees, and organisations with more than 50 employees are required to hire at least five new hires. The month of September will be treated as the foundation of the framework.
The 12% contribution of the workers and 12% from the employer for companies with up to 1,000 employees earning up to Rs. 15,000 (US$ 201.56) per month and licensed under EPFO would be borne entirely by the central government, amounting to a total of 24%.
According to Finance Minister Mrs. Nirmala Sitharaman, the Central Government will provide a two-year subsidy for new qualifying workers engaged on or after October 1, 2020.
"The subsidies will be credited in advance to the qualifying new employee's Aadhaar-seeded EPFO accounts," she said.
The government recently declared additional expenditure of Rs. 10,000 crore (US$ 1.34 billion) for the unorganised workforce that could be used to improve job generation spoken under Garib Kalyan Rojgar Abhiyan or even under the National Rural Employment Guarantee Scheme of Mahatma Gandhi.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.