Pradhan Mantri Rojgar Protsahan Yojana is a scheme under which the government contributes 12 percent of the new employees under EPF for three years.
Sources said that in its next stimulus package, the central government may announce a subsidy for new jobs. This subsidy can be in the form of Provident Fund up to 10 percent for both employees and companies employing more. In fact, the central government is preparing to re-start the Pradhan Mantri Rojgar Protsahan Yojana, which was discontinued on 31 March last year. Under the new version of the scheme, the government may announce a subsidy for new employment for the next two years.
When this scheme was launched, it was informed that the Pradhan Mantri Rojgar Protsahan Yojana is a scheme under which the government will provide new employees for three years under the Employees Provident Fund (EPF) and Employees Pension Scheme (EPS). Contributes 12 percent. These contributions will be given to those registered under EPFO (Employees Provident Fund Organization) till 1 April 2016 and whose salary is up to Rs 15,000 monthly. The entire system is online and Aadhaar based. Earlier, this benefit was only available to the EPS.
Also Read: Paytm to distribute Rs 1,000 crore loan to shopkeepers by March
According to sources, the Ministry of Labor has finalized the proposal and it was discussed at the Prime Minister’s Office level recently. A source said that this proposal is now likely to be included in the upcoming incentive package. The government is considering subsidizing for the next two years, although the scheme is expected to be launched in the next 6-7 months. As per the proposal, to avail this subsidy scheme, the salary of the employee should not exceed Rs 15,000 per month.
An existing company may be asked to make at least two new recruits if it has 50 or fewer employees. If it has more than 50 employees, at least five new recruits may be required to avail this subsidy. For a new company to be registered with EPFO, the employees’ reference base will be considered null and employers can avail subsidy for all newly eligible employees.
According to the Pradhan Mantri Rojgar Protsahan Yojana website, a new employee is one who is not working in registered establishment in EPFO on regular basis before 1 April 2016. If the new employee does not have a new UAN, it will be provided by the employer through the EPFO portal. The scheme has a dual benefit, where employers are encouraged to increase the employment base and employ large numbers of workers.
