The government has assured to provide subsidy for two years in respect of new employees engaged on or after 1 October 2020, up to 30 June 2021.
Prime Minister Narendra Modi-led Union Cabinet today approved an expenditure of Rs 1,584 crore for the current financial year for Atmanirbhar Bharat RojgarYojana (ABRY). The cabinet has also approved Rs 22,810 crore for the entire scheme period 2020-2023. The Rozgar Yojana scheme is introduced to boost employment in the formal sector and incentivize the creation of new employment opportunities during the Covid recovery phase under the Atmanirbhar Bharat package. The scheme involves many features, such as subsidy to firms for new employees, to spur job creation, which was severely hit due to the lockdown called to arrest the spread of the coronavirus pandemic.
The government has assured to provide subsidy for two years in respect of new employees engaged on or after 1 October 2020, up to 30 June 2021. Also, it will pay both 12 per cent employees’ contribution and 12 per cent employers’ contribution, that is, 24 per cent of wages towards EPF in respect of new employees in companies employing up to 1,000 employees for two years. However, for the firms employing more than 1,000 employees, the government will pay only employees’ share of EPF contribution.
Employees drawing less than Rs 15,000 as monthly wage and who were not working in any company registered with the Employees’ Provident Fund Organisation (EPFO) before 1 October 2020 will be eligible for the benefit. Further, any EPF member possessing Universal Account Number (UAN) drawing monthly wage of less than Rs 15000 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 firm will also be eligible to avail benefit.
Meanwhile, the government is seeking help from the industry chambers to generate jobs under the new scheme. During the pandemic, the government also used schemes such as MGNREGA to employ many migrant workers who suffered job losses due to the strict nationwide lockdown.