Under the Atmanirbhar Bharat Rojgar Yojana, the government will for two years 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 Rs 22,810 crore and benefit around 58.5 lakh employees.
The government of India will provide subsidy for two years in respect of new employees engaged on or after 1 October 2020 and up to 30 June 2021. The government will pay both 12 percent employees’ contribution and 12 percent employers’ contribution i.e. 24 percent of wages towards EPF in respect of new employees in establishments employing up to 1,000 employees for two years.
The Centre will pay only employees’ share of EPF contribution i.e. 12 percent of wages in respect of new employees in establishments employing more than 1,000 employee for two years.
An employee drawing monthly wage of less than Rs 15,000 who was not working in any establishment registered with the Employees’ Provident Fund Organisation (EPFO) before 1 October 2020 and did not have a Universal Account Number (UAN) or EPF Member account number prior to 1 October 2020 will be eligible for the benefit.
Any EPF member possessing UAN drawing monthly wage of less than Rs 15,000 who made exit from employment during COVID pandemic from 1 March 2020 to 30 September 2020 and did not join employment in any EPF covered establishment up to 30 September 2020 will also be eligible to avail the benefit.
EPFO will credit the contribution in Aadhaar seeded account of members in electronic manner. EPFO will develop a software for the scheme and also develop a procedure which is transparent and accountable at their end.
EPFO will work out modality to ensure that there is no overlapping of benefits provided under ABRY with any other scheme implemented by EPFO.