corporate law

Atmanirbhar Bharat Rozgar Yojana: Boosting Employment Post-COVID

Overview of the Atmanirbhar Bharat Rozgar Yojana

The Atmanirbhar Bharat Rozgar Yojana has been introduced to encourage the creation of new job opportunities during the recovery period following the COVID-19 pandemic. This scheme consists of two primary components: incentives for employee-beneficiaries and incentives for establishments.

Eligibility Criteria for Employee-Beneficiaries

  • New Employees: Individuals earning a monthly salary of less than ₹15,000 working with EPF-compliant organizations.
  • Rejoining Employees: EPF member employees who earned the aforementioned monthly wage and experienced a COVID-related employment gap from March 1, 2020, to September 30, 2020, must have rejoined on or after October 1, 2020.

Eligibility Criteria for Establishments

  • For Organizations with 50 Employees or Fewer: Must add a minimum of two employees to their reference base.
  • For Organizations with More than 50 Employees: Must add at least five employees to their reference base.
  • Establishments registering with EPFO after the scheme's launch will receive subsidies for all newly hired employees.

Central Government Subsidies

The central government will provide subsidies for a duration of two years for new employees starting from October 1, 2020:

  • Employers with up to 1,000 Employees: The subsidy will cover both the employer's and employee's EPF contributions (12% each), totaling 24% of wages.
  • Employers with More than 1,000 Employees: The subsidy will only cover the employee's contribution of 12% of the EPF wages.

Frequently Asked Questions (FAQ)

  1. Who is this scheme applicable to?

    • It is applicable to all establishments.

  2. From when is this scheme applicable?

    • It applies to EPF member employees who experienced a COVID-related employment break between March 1, 2020, and September 30, 2020, and rejoined on or after October 1, 2020.

  3. Can employers deduct EPF contributions from eligible employees?

    • No, employers cannot deduct EPF contributions from these employees.

  4. What is the effect of this scheme on employees' salaries?

    • Employees' take-home salaries will increase.

  5. What happens if the ECR is not submitted on time?

    • There will be no issues in that case.