Keypoints:
- The scheme would till 2023 entail an outgo of Rs 22,810 crore
- ABRY has been approved to boost employment in the formal sector towards the larger goal of speedy recovery of economy which has hit by COVID-19 pandemic.
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved “Aatma Nirbhar Bharat Rojgar Yojana” (ABRY) to boost employment in the formal sector towards the larger goal of speedy recovery of economy which has hit by COVID-19 pandemic.
The move aims to incentivize the creation of new employment opportunities during the phase during the COVID-19 recovery phase under “Atmanirbhar Bharat Package 3.0″.
The Cabinet approved an expenditure of Rs. 1,584 crore for the current financial year and Rs 22,810 crore for the entire scheme period – 2020-2023.
Union Labour Minister Santosh Kumar Gangwar said that,”The scheme will provide benefits to lakhs of people in the formal/organised sector.”
Under the scheme, the government will provide subsidy for two years in respect of new employees engaged on or after October 1, 2020, and up to June 30th, 2021.It will pay both 12% of employees’ contribution and 12% employers’ contribution i.e. 24% of wages towards EPF in respect of new employees in establishments employing up to 1000 employees for two years.It will pay only employees’ share of EPF contribution i.e. 12% of wages in respect of new employees in establishments employing more than 1000 employee for two years.
An employee drawing a monthly wage of less than Rs. 15,000, who was not working in any establishment registered with the Employees’ Provident Fund Organisation (EPFO) before October 1, 2020, and did not have a Universal Account Number (UAP) or EPF Member account number before October 1, 2020, will be eligible for the benefit.
The SBI research report had said almost 15-20 lakh employees will get benefited from this scheme by March 2021 if one goes by current trend based on EPFO data. The nationwide lockdown imposed to contain the Covid-19 spread and the subsequent economic slowdown led to large job cuts across sectors. The latest scheme is expected to aid hiring by companies and address the situation.
A similar scheme Pradhan Mantri Rojgar Prohatsan Yojana, launched in 2016 and valid till 2019, had created 1.21 crore formal jobs. However, under this the government was reimbursing just 12% of the employers contribution.
