In News: The Central Government on 12.11.2020 announced the Atma Nirbhar Bharat 3.0 package containing several stimulus measures to revive the economy and provide relief to stressed sectors.
Atmanirbhar Bharat Rojgar Yojana (ABRY)
- A scheme to boost creation of new jobs in the formal sector through support of EPF contributions by the Central Government for new employees.
- As part of the package Atma Nirbhar Bharat Rozgar Yojana (ABRY) Scheme is announced to incentivize creation of new employment and restoration of loss of employment during the COVID pandemic.
- Under this, Government of India will provide subsidy for two years in respect of new employees engaged on or after 1st October, 2020 and up to 30th June, 2021.
- Government will pay both 12% employees’ contribution and 12% employers’ contribution i.e. 24% of wages towards EPF in respect of new employees in establishments employing upto 1000 employees for two years.
- Government will pay only employees’ share of EPF contribution i.e. 12% of wages in respect of new employees in establishments employing more than 1000 employees for two years.
- The Scheme proposes to incentivize employers, registered with EPFO, for giving employment to new employees and re-employing persons from the low wage bracket who lost their jobs during COVID-19 pandemic.
- The Central Government will pay both the employees’ and employer’s share of contribution payable under the EPF & MP Act, 1952 or only the employees’ share, depending on the employment strength of the establishment, directly to the Universal Account Number of eligible employees maintained by the EPFO.
Validity of Scheme
- The Scheme stands commenced from 1st October, 2020 and shall remain open for registration of eligible employers and new employees up to 30th June, 2021.
- The benefit shall be available for a period of twenty-four months from date of registration of new employee, not later than 30/06/2023 in any case.
- 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 1st October 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 March 1, 2020, to September 30, 2020, and did not join employment in any EPF covered establishment up to September 30 will also be eligible to avail benefit.
Employees’ Provident Funds Organisation (EPFO)
- Under the Ministry of Labour and Employment.
- EPFO is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken.
- The Employees’ Provident Fund came into existence with the promulgation of the Employees’ Provident Funds Ordinance on the 15th November, 1951. It was replaced by the Employees’ Provident Funds Act, 1952.
- The Act and Schemes framed there under are administered by a tripartite Board known as the Central Board of Trustees, Employees’ Provident Fund,consisting of representatives of Government (Both Central and State), Employers, and Employees.
Employees’ Provident Fund Organisation has a vision to reposition itself as a world class Social Security Organisation providing futuristic services meeting the growing requirements of all categories of its stakeholders. EPFO Vision 2030 envisages:
- Universal Social Security Coverage on mandatory basis by way of Provident Fund, Pension and Life Insurance for all workers of the country
- Online Services for all EPFO benefits with State-of-the-Art Technology
- Implementation of policies for a benefit structure with adequate support level of social security
EPF Scheme 1952
- Accumulation plus interest upon retirement and death
- Partial withdrawals allowed for education, marriage, illness and house construction
- Housing Scheme for EPFO Members to achieve Hon’ble Prime Minister’s Vision of housing to all Indians by 2022
Pension Scheme 1995 (EPS)
- Monthly benefit for superannuation/retirement, disability, survivor, widow(er) and children
- Minimum pension on disablement
- Past service benefit to participants of erstwhile Family Pension Scheme, 1971
Insurance Scheme 1976 (EDLI)
- Benefit provided in case of death of an employee who was a member of the scheme at the time of death
- Benefit amount 20 times of the wages. Maximum benefit of 6 lakh