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Home Law & Policy

Aatmanirbhar Bharat Rozgar Yojana

November 13, 2020
in Law & Policy, Economy
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Recently, the Union Finance Minister announced measures on Aatma Nirbhar Bharat 3.0, Aatmanirbhar Bharat Rozgar Yojana is part of it

 About Aatmanirbhar Bharat Rozgar Yojana

It is a new scheme to incentivize job creation during COVID-19 recovery

If EPFO-registered establishments take in new employees without EPFO registration or those who lost jobs earlier, the Yojana will benefit these employees.

Who are the beneficiaries under the scheme?

  • Any new employee joining employment in EPFO registered establishments on monthly wages less than Rs.15,000 will get the benefit
  • EPF members drawing a monthly wage of less than Rs.15,000 who made an exit from employment during COVID Pandemic from 01.03.2020 to 30.09.2020 and are employed on or after 01.10.2020.

Subsidy by Central Government 

Central Government will provide subsidy for two years in respect of new eligible employees engaged on or after 01.10.2020 at the following scale:

  • Establishments employing up to 1000 employees: Employee’s contributions (12% of Wages) & Employer’s contributions (12% of wages) totalling 24% of wages
  • Establishments employing more than 1000 employees: Only Employee’s EPF contributions (12% of EPF wages)
  • The scheme will be effective from October 1, 2020 and operational till 30th June 2021. Certain other eligibility criteria would have to be met, and the Central Government will provide subsidy for two years in respect of new eligible employees.
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