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Wednesday, 25 November 2020

Government Attempts Economic Recovery with Atmanirbhar Bharat Package

 Following the impact of Covid-19, the government is looking to build and strengthen the state of the economy, setting in place several initiatives for incentive and relief. Among them is the recently announced Atmanirbhar Bharat Package 3.0.

The Atmanirbhar Bharat Rozgar Yojana takes inspirations from PMRPY that offered benefits to over 1.5 lac establishments. The current scheme is intended to offer more employment opportunities to aid recovery from COVID.

The Scheme will be applicable and operational till 30th June 2021.

Criteria for Establishments

Establishments desirous of obtaining benefits from this scheme must be registered with EPFO. Such establishments need to have:

-        Added a minimum of 2 new employees if their reference base is 50 employees or less

-        Added a minimum of 5 employees if their reference base is over 50 employees

(Note: The addition and base references are compared and estimated as in September 2020.)

All establishments registering with EPFO following the commencement of the Scheme are eligible to avail subsidy for all new employees.

Beneficiaries

Beneficiaries under this Scheme include:

  • -        All new employees who have joined establishments registered with EPFO, and drawing monthly wages below Rs. 15,000.
  • -        EPF members whose average monthly wage is under Rs. 15,000 and have exited their employment between 1.3.2020 and have been employed on or after 1.10.2020.

Government Support and Subsidy

The central government has committed to support eligible employees who have been engaged on or after 1.10.2020 for a period of two years. The subsidy allowed includes:

💲 Employee’s contribution (12% of wages) and employer’s contribution (12% of wages) equaling 24% of wages [for establishments with up to 1000 employees]

💲Employee’s contribution to EPF (12% of EPF wage) [for establishments with over 1000 employees]

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