“Pradhan Mantri Rojgar Protsahan Yojana”(PMRPY) has been announced in the Budget for 2016-17 with the objective of promoting employment generation and an allocation of Rs. 1000 crores has been made. The scheme is being implemented by the Ministry of Labour and Employment in 2016-17. Under the scheme employers would be provided an incentive for enhancing employment by reimbursement of the 8.33% EPS contribution made by the employer in respect of new employment.
The PMRPY scheme is targeted for workers earning wages upto Rs. 15,000/- per month. Publicity and awareness campaign is an integral component of the PMRPY scheme for encouraging employers including Micro, Small and Medium Enterprises (MSMEs) to avail benefits.
After the union budget 2018, the benefit under the PMRPY SCHEME (Pradhan mantri rojgar protsahan yojana), has been extended from 8.33% to full 12% of the employer contribution.
Now, if you hire new employees who previously were not covered under the EPF act 1952, you are entitled to claim 12% employer contribution in the EPF return under the PMRPY scheme for the first 3 years of their employment. This scheme is applicable to semi-skilled and unskilled labour who are joining the workforce for the first time. It means that they should get a new UAN number and a new EPF account while joining the company.
All establishments registered with Employees’ Provident Fund Organisation (EPFO) can apply for availing benefits under the scheme subject to the following conditions:
(a)Establishments registered with the Employees’ Provident Fund Organisation (EPFO) should also have a Labour Identification Number (LIN) allotted to them under the Shram Suvidha Portal (https://shramsuvidha.gov.in). The LIN will be the primary reference number for all communication to be made under the PMRPY Scheme.
(b)The eligible employer must have added new employees to the reference base of workers in order to avail benefits under the Scheme from August, 2016 onwards. The reference base of workers will be determined by the number of employees against whom the employer has deposited the 12% (3.67% EPF + 8.33% EPS) with EPFO as on 31st March, 2016, as ascertained/verified from the monthly ECR for March, 2016. For example, an establishment, say M/s ABC Ltd. had filed an ECR for the employers’ contribution for 45 employees/workers in March, 2016. In the month of April, 2016, the establishment has added, say, 15 new workers bringing the total of employees to 60, the employer will be eligible to apply for the PMRPY scheme benefits for these 15 new employees. The employer will not be eligible to avail of PMRPY benefits if there is no new employment vis-à-vis the reference base in any subsequent month. The new employee, as mentioned in para 5(e) above, is one that had not worked in any EPFO registered establishment or had a Universal Account Number, in the past, i.e. prior to 01st April, 2016.
(c)For new establishment coming into existence/getting registered with EPFO after 01st April, 2016, the reference base will be taken as Zero/NIL employees. Thus, the employer can avail of PMRPY benefits for all new eligible employees.
(d)The PMRPY scheme is targeted for employees earning wages less than Rs 15,000/- per month. Thus, new employees earning wages more than Rs 15,000/- per month will not be eligible. A new employee is one who has not been working in an EPFO registered establishment on a regular basis prior to 01st April, 2016 and will be determined by the allocation of a new Aadhaar seeded Universal Account Number (UAN) on or after 01.04.2016. In case the new employee does not have a new UAN, the employer will facilitate this through the EPFO portal.
(e)The employers will continue to get the 8.33% and 3.67% EPF contribution paid by the Government for these eligible new employees for the next 3 years, provided they continue in employment by the same employer.
(f)Employers/Establishments applying for the Scheme shall be fully responsible for the information uploaded. If at any time, it is found that the information submitted is incorrect or false, it will be assumed that the EPS payment(and EPF payment for textile sector) has not been made for these employees. The employer will then be liable for dues and penalties as already specified under the relevant provisions of The Employees’ Provident Fund Scheme, 1952.
The employers are also eligible to get the 3.67% EPF contribution paid by the Government as mentioned in the PMRPY on-line form. This benefit can be availed of by the textile (apparel) sector establishments dealing with the Manufacture of wearing apparel, in particular NIC Codes 1410 and 1430. The Government, in this case, will also pay the EPF contribution of 3.67% in addition to paying the EPS contribution of 8.33%.
The payment of 8.33% EPS and 3.67% EPF by the Government will be made after the employer has credited the 12% EPF contribution of the employees with EPFO.
The industry sector/sub-sectors covered by this component are the following NIC Codes:
(1) NIC 1410: Manufacture of wearing apparel, except fur apparel
- NIC 14101: Manufacture of all types of textile garments and clothing accessories
- NIC 14102: Manufacture of rain coats of waterproof textile fabrics or plastic sheetings
- NIC 14105: Custom tailoring
- NIC 14109: Manufacture of wearing apparel not elsewhere classified
(2) NIC 1430: Manufacture of knitted and crocheted apparel
- NIC 14301: Manufacture of knitted or crocheted wearing apparel and other made-up articles directly into shape (pullovers, cardigans, jerseys, waistcoats and similar articles)
- NIC 14309: Manufacture of other knitted and crocheted apparel including hosiery
How to register new employee under PMRPY Scheme?
- EPF registered Employers can visit the PMRYP site and log in with their LIN/EPFO registration ID.
- Register employee with UAN No
- There must be specific mention of the job role and post for the new employment along with the date the employee would join and the date of exit, if it is applicable.
- The scheme is to cover employment of new workers earning wages that are less than INR 15000, per month.
- The PMRPY form has to be submitted by the end of each month by the eligible employers at the earliest, preferably by the 10th of the following month.
- Failure to submit by 10th of the following month, the employer will stand to lose his benefits under the PMRPY Scheme for that particular month.
- Upload the information as per Aadhar only.
- Validate aadhar information and approved by DSC of the employer.
- PMRPY amount auto populated on ECR payment acknowledgment.
For EPF & ESIC Registration/ Register your employees under PMRPY scheme, please send us one liner @ [email protected] or visit www.rocguru.com
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