Part of: GS Prelims and GS-II – Policies and interventions & GS-III – Economy
In news
Union Minister for Finance announced a new scheme of AATMANIRBHAR BHARAT ROZGAR YOJANA to incentivize job creation during COVID-19 recovery
Key takeaways
If EPFO-registered establishments take in new employees without EPFO registration or those who lost jobs earlier, the Yojana will benefit these employees.
Beneficiaries / New Employees under the scheme would be:
any new employee joining employment in EPFO registered establishments on monthly wages less than Rs.15,000
EPF members drawing monthly wage of less than Rs.15,000 who exited from employment during COVID Pandemic from 1st March to 30th September, 2020 and is employed on or after 1st October, 2020.
Central Govt. will provide subsidy for two years in respect of new eligible employees engaged on or after 1st October, 2020 at following scale:
Establishments employing up to 1000 employees: Employee’s contributions (12% of Wages) & Employer’s contributions (12% of wages) totalling 24% of wages
Establishments employing more than 1000 employees: Only Employee’s EPF contributions (12% of EPF wages)
The scheme will be effective from October 1, 2020 and operational till 30th June 2021.
