CABINET CLEARS ₹23,000 CRORE ATMANIRBHAR ROJGAR PACKAGE

NEW DELHI: The Union Cabinet on Wednesday approved ₹22,810 crore outlay for the Atmanirbhar Bharat Rojgar Yojana (ABRY) that aims at encouraging businesses to do fresh hiring amid the pandemic.

“The Union Cabinet, chaired by the Prime Minister, Narendra Modi, has given its approval for Atmanirbhar Bharat Rojgar Yojana to boost employment in formal sector and incentivise creation of new employment opportunities during the Covid recovery phase under Atmanirbhar Bharat Package 3.0,” an official statement said.

The Cabinet has approved an expenditure of ₹1,584 crore for the current financial year and ₹22,810 crore for the entire Scheme period—2020-2023, it added.

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 30, 2021, labour minister Santosh Gangawar said in a briefing on the Cabinet decision.

The government will pay both 12% employees’ contribution and 12% employers’ contribution ie 24% of basic wages towards EPF (employees provident fund) in respect of new employees in establishments employing up to 1,000 employees for two years.

However, the government will pay only employees’ share of EPF contribution ie 12% of wages in respect of new employees in establishments employing more than 1,000 employees for two years.

An employee drawing a monthly wage of less than ₹15,000, who was not working in any establishment registered with the EPFO before October 1, 2020, and did not have a Universal Account Number or EPF Member account number prior to October 1, 2020, will be eligible for the benefit.

Any EPFO member possessing Universal Account Number (UAN) drawing a monthly wage of less than ₹15,000, who exited employment during Covid pandemic from March 1, 2020, to September 30, 2020, and did not join employment in any EPFO covered establishment up to September 30, 2020, will also be eligible to avail the benefit.

The EPFO will credit the contribution in Aadhaar seeded account of members in an electronic manner.

The EPFO will develop software for the scheme and also develop a procedure which is transparent and accountable.

THE GOVT WILL PROVIDE SUBSIDY IN RESPECT OF NEW STAFF ENGAGED FROM OCT 1, 2020 TO JUN 30, 2021