Centre to Provide Rs 22,810 Crore For Employer Contribution To Retirement Fund of New Hires For 2 Years

New Delhi: The Central government on Wednesday said that it will provide Rs 22,810 crore towards employee, employer contribution to retirement fund of new hires for 2 years. The announcement was made by Labour Minister Santosh Gangwar. Also Read – Cabinet Approves Laying Submarine Optical Fibre to Provide High-speed Broadband to Lakshadweep | All You Need to Know

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday also approved Atmanirbhar Bharat Rojgar Yojana (ABRY) to boost employment in formal sector and incentivize creation of new employment opportunities during the Covid recovery phase under Atmanirbhar Bharat Package 3.0. Also Read – ‘Always a Team Man, Pleasure to Captain Him’ – Sachin Tendulkar, BCCI President Sourav Ganguly Lead Tribute After Parthiv Patel Announces Retirement

In this regard, the Centre approved an expenditure of Rs. 1,584 crore for the current financial year and Rs22,810 crore for the entire scheme period from 2020 to 2023. Also Read – Former West Bengal CM Buddhadeb Bhattacharya Rushed To Hospital With Breathing Problems

Some of the salient features of the Scheme:

1) The Centre will provide subsidy for two years in respect of new employees engaged on or after October 1, 2020 and up to June 30, 2021.

2) The Centre will pay both 12% employees’ contribution and 12% employers’ contribution i.e.  24% of wages towards EPF in respect of new employees in establishments employing up to 1000 employees for two years.

3) The Centre will pay only employees’ share of EPF contribution — 12% of wages in respect of new employees in establishments employing more than 1000 employee for two years.

4) An employee drawing monthly wage of less than Rs 15000, who was not working in any establishment registered with the Employees’ Provident Fund Organisation (EPFO) before October 1, 2020 and did not have a Universal Account Number or EPF Member account number prior to 1stOctober 2020 will be eligible for the benefit.

5) Any EPF member possessing Universal Account Number (UAN) drawing monthly wage of less than Rs 15000 who made exit from employment during 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 benefit,

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

7) The EPFO shall develop a software for the scheme and also develop a procedure which is transparent and accountable at their end.

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