Finance Minister Nirmala Sitharaman announced Atmanirbhar Bharat Rozgar Yojana on Thursday, aiming to incentivize the creation of new job opportunities during the economic recovery phase of Covid-19. The new scheme will benefit any new employee entering employment in EPFO registered establishments with monthly salaries below Rs 15,000. The new scheme will benefit any new employee entering employment in EPFO registered establishments with monthly salaries below Rs 15,000. It will also benefit those who left their job between March 1 and September 30 and are employed as of October 1, Sitharaman said.
Eligibility criteria for establishments:
Establishments registered with EPFO will be eligible for benefits if they add new employees compared to the employee baseline in September 2020. To take advantage of benefits, establishments, with up to 50 employees, would have to add a minimum of two new employees. Organizations, with more than 50 employees, would have to add at least five employees to take advantage of the benefits. Establishments that register with EPFO after the start of the scheme will receive a subsidy for all new hires and the scheme will remain operational until June 30, 2021.
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Government contribution:
Organizations with up to 1,000 employees would receive employee contribution (12 percent of wages) and employer contributions (12 percent of wages), for a total of 24 percent of wages, for two years. Employers with more than 1,000 employees will get a 12 percent employee EPF contribution from the central government. Grant support will be credited in advance to Aadhar’s initialized EPFO (UAN) account of an eligible new employee.
(with contributions from the agency)
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