Government announces stimulus 3.0. The Government taken the step to promote job creation. Today Finance Minister Nirmala Sitharaman announced Atmanirbhar Bharat Rozgar Yojana. As per scheme establishment covered under EPF Act will get subsidy for all new employees, subject to some conditions. The scheme will be operational till 30th June 2021. The Central Government will give subsidy by way of EPF contributions for two years in respect of new eligible employees, subject to some conditions.
Beneficiary Criteria
i) New Employee joining employment in EPFO registered establishments on monthly wages less than Rs. 15000/- during validity period of the scheme
ii) EPF members drawing monthly wages less than Rs. 15000/- who made exit from employment during Covid Pandemic from 01.03.2020 to 30.09.2020 and are employed on or after 01.10.2020.
The subsidy support to get credited upfront in Aadhar seeded EPFO Account (UAN) of eligible new employees.
Eligibility for Establishments
A) Employers if they add new employees compared to reference base of employees as compared to September 2020 will be covered under the scheme if they add
i) minimum of two new employees if reference base if 50 employees or less.
ii) If reference base if more than 50, establishments have to add minimum of five new employees to get covered under the scheme.
B) Establishment registering with EPFO after commencement of Scheme to get subsidy for all new employees.
If new employees of requisite number are recruited from October 1, 2020 to June 30, 2021, the establishments will be covered for the next two years.
For establishments employing up to 1,000 employees, employee’s contribution (12% of wages) and employer’s contributions (12% of wages), totaling 24% of wages, will be contribute by central govt. Establishments employing more than 1000 employees, only employee’s EPF contributions (12% of EPF wages) will be contributed by central government