Table of Contents
Why Aatmanirbhar Bharat Rojgar Yojana was launched?
- Many people lost their jobs due to the closure of several micro and small enterprises due to the lockdown imposed due to the Kovid-19 epidemic.
- The Central Government has announced a number of self-reliant schemes aimed at bringing the economy back on track and making the people self-reliant.
- On November 12, 2020, the Central Government announced the ‘Aatmanirbhar Bharat Rojgar Yojana’ (ABRY) with the objective of promoting employment in the formal sector and encouraging the creation of new employment opportunities under Self-reliant India Package 3.0.
On 9 December 2020, the Union Cabinet chaired by the Prime Minister approved the ‘Aatmanirbhar Bharat Rojgar Yojana’ (ABRY). The Cabinet has approved an expenditure of Rs 1,584 crore for the current financial year and an expenditure of Rs 22,810 crore for the entire plan period 2020-2023.
The scheme proposes to employ new employees and encourage employers (registered in EPFO) to re-employ low-income individuals who lost jobs during the Covid-19 pandemic.
- The scheme will be considered starting from October 1, 2020.
- Under this scheme, eligible employers and new employees can be registered by June 30, 2021.
- The benefits of the scheme will be available for a period of 24 months from the date of registration of the new employee, which will not be later than June 30, 2023, in any case.
- A new employee with a monthly income of less than Rs 15000, who was not employed in any organization registered with EPFO Atmanirbhar Bharat before October 1, 2020, will be eligible to receive benefits under the scheme.
- Members of the Employees Provident Fund (EPF) who lost jobs from March 1, 2020 to September 30, 2020, who got employment after October 1, 2020 and have a monthly income of less than Rs 15000, would also benefit under the scheme.
Salient features of this scheme –
- The government of India will provide subsidy for a period of two years to all new employees involved on or after October 1, 2020 and till June 30, 2021.
- In Employment Organizations having a maximum of 1000 employees, the Central Government will contribute 12 percent employee contribution and 12 percent employer contribution (both) ie 24 percent of salary allowances to new employees for a period of 2 years for new employees.
- In employment provider organizations having more than 1000 employees, the Central Government will contribute only 12 percent of the employees in the EPF for a period of 2 years in respect of new employees.
- EPFO will pay this contribution electronically to the account linked to the Aadhaar number of the members.
- EPFO will develop a software for this scheme and a transparent and accountable process will also be adopted.
- EPFO will adopt a suitable way to ensure that the benefits of ABRY and any other scheme implemented by EPFO do not overlap.