Employees’ and emplyers’ PF shares under Atmanirbhar Bharat Rojgar Yojana

New Delhi: The Union Cabinet has given its approval for Atmanirbhar Bharat Rojgar Yojana (ABRY) to boost employment in the formal sector and incentivize the creation of new employment opportunities during the Covid recovery phase under Atmanirbhar Bharat Package 3.0. 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 i.e. 2020-2023.

Under the ABRU the Government will provide subsidy for two years in respect of new employees engaged on or after October 01, 2020 and up to June 30, 2021. Apart from this, the Government 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. Govt will pay only employees’ share of EPF contribution i.e. 12% of wages in respect of new employees in establishments employing more than 1000 employee for two years.

An employee drawing a monthly wage of less than Rs. 15000/- who was not working in any establishment registered with the Employees’ Provident Fund Organisation (EPFO) before October 01, 2020, and did not have a Universal Account Number or EPF Member account number prior to October 01, 2020, will be eligible for the benefit. 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 March 01, 2020, to September 30, 2020, and did not join employment in any EPF covered establishment up to September 30, 2020, will also be eligible to avail benefit.

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

Also, it has been mandated under the scheme that the EPFO shall develop software for the scheme and also develop a procedure which is transparent and accountable at their end.