Atmanirbhar Bharat Rojgar Yojana (ABRY) gets cabinet approval

In order to boost employment in the formal sector and incentivise creation of new employment opportunities during the Covid recovery phase under the Atmanirbhar Bharat Package 3.0, the Union Cabinet chaired by PM Modi has given its approval to the Atmanirbhar Bharat Rojgar Yojana (ABRY). For this, the Cabinet has approved an expenditure of Rs. 1,584 crore for the current financial year and Rs.22,810 crore for the entire scheme period of 2020-2023.

The salient features of the scheme are as under:

The Government of India (GoI) will provide subsidy for two years in respect of new employees engaged on or after 1st October 2020 up to 30th June, 2021.

The government will pay both 12 per cent employees’ contribution and 12 per cent employers’ contribution amounting to totally 24 per cent of wages towards EPF in respect of new employees in establishments employing up to 1,000 employees for two years.

The government will pay only Employees’ Provident Fund (EPF) contribution of Employees share of 12 per cent of wages in respect of new employees in establishments employing more than 1,000 employees for two years.

An employee drawing monthly salary of less than Rs. 15,000, who was not working in any Establishment registered with the Employees’ Provident Fund Organisation (EPFO) before 1st October2020 and did not have a Universal Account Number or EPF member account number prior to 1st October 2020 will also be eligible to get the benefit.

Any EPF member possessing Universal Account Number (UAN) drawing monthly salary of less than Rs. 15,000 who left an establishment during the Covid pandemic from 01.03.2020 to 30.09.2020 and did not join employment in any EPF covered establishment up to 30.09.2020 will also be eligible to avail the benefit.

The EPFO will credit the contribution in Aadhaar seeded account of members in an electronic manner. It shall develop a Software for the scheme and also develop a procedure which would be transparent and accountable at their end.

The EPFO shall work out a modality to ensure that there is no overlapping of benefits provided under ABRY with any other scheme implemented by EPFO.