Short Summary on Atmanirbhar Bharat Rozgar Yojna

The new Scheme is being launched to incentivise the creation of new employment opportunities during the COVID recovery phase. The Aatmanirbhar Bharat Rozgar Yojana has been bifurcated into Incentives for employee-beneficiaries as well as incentives for establishments.

Eligibility for Employee-Beneficiaries:-

>  New Employees earning monthly wages less than Rs.15,000 with any EPF compliant organisation.

>  EPF member Employees with the above monthly wage but with a COVID related break in employment from 01.03.2020 to 30.09.2020 and with a rejoining date on or post 01.10.2020

Short Summary on Atmanirbhar Bharat Rozgar Yojna

Eligibility for Establishments

>   Establishments adding a minimum of two employees to their reference base of 50 employees.

>  Establishments adding a minimum of five employees to a reference base of more than 50 employees.

>  Subsidy to be extended to all new employees of establishments registering with EPFO after the scheme is operational.

Central Government Subsidies

  • The Central Government Subsidies will be effective for a two year period for new employees starting from October 01, 2020.
  • In the case of organizations employing up to 1000 employees, the government subsidy will cover EPF contribution to be made by the employer and the employee (12% each), totaling 24% of wages.
  • In the case of organizations employing more than 1000 employees, the government subsidy will cover the Employee contribution, i.e. 12% of the EPF wages.
  • The subsidy support is to be credited to the Aadhar seeded EPF Account of the eligible employee.

Some Frequently Ask Questions (FAQ):-

1. Applicability of the announcement?

Ans: Applicable on all establishment.

2. Applicable from?

Ans: EPF member Employees with the above monthly wage but with a COVID related break in employment from 01.03.2020 to 30.09.2020 and with a rejoining date on or post 01.10.2020.

3. Can Employer deduct EPF from the eligible employees?

Ans: No

4. What is the impact on employees’ salary?

Ans: Salary in hand will increase.

5. What if ECR not submitted on time?

Ans: No Problem

Author Bio

Qualification: Post Graduate
Company: ANUJ CONSULTANCY SERVICES
Location: VIRAR EAST, Maharashtra, India
Member Since: 11 Jun 2020 | Total Posts: 4
Specializes in Labour Laws, Tax advisory, Audit & Assurance and Business Management having an experience of 7+ years. In practice for more than 5+ years as a consultant for Labour Laws and Tax. Along with 5+ years of Audit, Tax, and Account experience with, holds a Master degree in Comm View Full Profile

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