To create more jobs, Finance Minister Nirmala Sitharaman announced on Thursday a special subsidy plan: Aatma Nirbhar Bharat Rozgar Yojana. Under the scheme, those establishments that make new hires will receive a special EPF subsidy from the central government. The EPF statutory allowance will be awarded for a period of two years from the date of your employment during the previous period.
Any new employee entering employment in EPFO registered establishments with a monthly salary of less than Rs. 15,000 will be eligible to receive the benefit. Employee contribution (12%) and employer contribution (12%) totaling 24% of wages will be delivered to establishments, said the finance minister.
The employee contribution (12% of salary) and the employer contribution (12% of salary) for a total of 24% of salary will be delivered to establishments for two years. Any registered establishment of the Employee Provident Fund Organization (EPFO) that accepts new employees will be eligible to receive the benefit of this subsidy. However, there are some preconditions that employers must meet in order to take advantage of the benefits advertised under the Aatma Nirbhar Bharat Rozgar Yojana.
The plan will also cover HBS members who earn monthly salaries below ₹15,000, who left employment during the COVID-19 pandemic as of March 1, 2020 and are employed as of October 1, 2020.
The Aatma Nirbhar Bharat Rozgar Yojana will cover establishments registered with EPFO if they add new employees compared to the employee baseline in September 2020. The condition will be to add a minimum of two new employees for establishments with up to 50 employees. Those establishments with more than 50 employees must give a minimum of five new jobs. The scheme would be applicable until June 30, 2021.
“Atma Nirbhar Bharat 3.0 has been announced in the context of improving economic activity and is a mix of announcements for various sectors. Few new plans have been implemented, such as the subsidy for the contribution of employees and employers to EPF with the condition This would go a long way towards reducing the cost of production seen in its entirety with the PLI scheme and other announcements, “said Divakar Vijayasarathy, founder and managing partner of DVS Advisors LLP.
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