The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Scheme has been designed to incentivise employers for generation of new employment, where Government of India will be paying 8.33% amended*) EPS contribution of the employer for the new employment
This scheme has a dual benefit, where, on the one hand, the employer is incentivised for increasing the employment base of workers in the establishment, and on the other hand, a large number of workers will find jobs in such establishments.
A direct benefit is that these workers will have access to social security benefits of the organized sector
This scheme is available for all the establishments that are registered with the Employees’ Provident Fund Organization and satisfy the following conditions:
Note: The employers and establishments that apply for this scheme are held fully responsible for the information that they furnish. If at any time any of it is found to be incorrect, it will be assumed that the EPS payment/EPF payment for the textile industry was not made for the employees. This will make the employer liable to penalties under the rules of The Employees’ Provident Fund Scheme, 1952.
Government of India will pay the full employer’s contribution (EPF and EPS both) as admissible from time to time w.e.f – 01.04.2018 for a period of three years to the new employees and to existing beneficiaries for their remaining period of three years through EPFO. The terminal date for registration of beneficiary through establishment is 31st March, 2019.
In order to incentivize creation of new jobs in the formal sector, Government of India will pay the Employee Pension Scheme contribution of 8.33% for all new employees enrolling in EPFO for the first three years of their employment. This will incentivize the employers to recruit unemployed persons and also to bring into the books the informal employees. In order to channelize this intervention towards the target group of semi-skilled and unskilled workers, the scheme will be applicable to those with salary up to Rs 15,000 per month.
Note: This note is only for disseminating knowledge and we do not intend to express any views or opinions in any manner whatsoever.
Author: Monica Thakur is Associate Company Secretary with M&K Associates and can be reached at firstname.lastname@example.org