CA Madhur Zanwar

Under: Aatmnirbhar Bharat Abhiyan 3.0

The salient features of the Atmanirbhar Bharat Rojgar Yojana are as under: 

√ Government of India will provide subsidy for two years in respect of new employees engaged on or after 1st October, 2020 and upto 30th June, 2021 in establishments employing upto 1000 employee for two years.

√ Government of India will pay both 12% employees’ contribution and 12% employers’ contribution i.e.  24% of wages towards EPF in respect of new employees.

√ An employee drawing monthly wage of less than Rs. 15000/- who was not working in any establishment registered with the Employees’ Provident Fund Organisation (EPFO) before 1st October, 2020 and did not have a Universal Account Number or EPF Member account number prior to 1stOctober 2020 will be eligible for the benefit,

√ 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 01.03.2020 to 30.09.2020 and did not join employment in any EPF covered establishment up to 30.09.2020 will also be eligible to avail benefit,

√ EPFO will credit the contribution in Aadhaar seeded account of members in electronic manner

*Conditions:*

> Scheme is for employees with monthly wages less than *Rs.15,000/-*

>  If establishment has less than 50 employees, minimum 2 new employees be added

> If you have more than 50 employees, you should employ minimum 5 or more new

> New means, First time PF Registration, on or after 01.10.2020 but before 30.06.2021 and who did not have a UAN prior to 1st October 2020.

> Also, if any old employee lost or left job between 01.03.2020 to 30.09.2020, then on re-employment after 1.10.20 he shall get the benefit

> Businesses which are not yet covered in PF but do so now shall get the benefit for *ALL* their employees

> Scheme open till 30.06.2021

> Reference base of employee is arrived on the basis of ECR filed for Sept. 20 or as per the lase ECR filed upto 11.11.2020.

*Benefit in numbers explained* 

  • Example, if an employee is at 14,999/- then Rs.1800/- (12% employee share) and Rs.1800/- (12% employer share), total Rs.3600/- per month shall be paid by the Government for 2 years.

Total of 3600 X24 months = Rs.86,400 (Add: Interest) 

  • Suppose one is able to adds 20 employees, it will mean benefit of upto Rs.86,400 X 20= Rs.17,28,000/- in 2 years
  • And for new employees that one adds till 30.06.2021, each employee shall get additional benefit of Rs.43,200/- per year. It means PF shall not be deducted from new eligible employees

CONCLUSION

  • This is huge incentive by the Government to encourage businesses to add new employees and also to establishments not yet registered with EPFO to do so.
  • Ironically, it means that New eligible employees get Rs.1800/- per month more than existing old employees presently drawing less than Rs.15,000/- wages per month, for 2 years
  • Nonetheless It is a grand incentive for new businesses that employ 20 or more employees on or before 30th June 2021
  • It’s also a grand incentive for existing businesses not yet covered in PF (employees less than 20) or those who have avoided or evaded PF registration.
  • Establishment enrolled under voluntary scheme is also eligible for benefits.

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