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Tuesday 29 November 2016

The Importance and Scope of Pradhan Mantri Rojgar Protsahan Yojana

The country has witnessed an anomaly of sorts in the few last years. Despite trends and demographics being highly in favour of the country, and especially so for as far as the youth are concerned, the figures that have translated have been alarming. The growth was not remarkable to start off with. Accompanying this was the fact that the rate of growth of jobs has not been consistent. The last decade has seen an actual decline in the people employed in the labour force, and an alarming drop in the female population engaged. The greatest cause of concern perhaps, has been the fact that the unemployment rate among the youth has been especially high. This is even true for those who have a minimum of a secondary level of education.

To help streamline processes and also incentivise and improve the situation in organisations, the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) has been a significant step in not just encouraging organisations to employ a greater number of people, but also facilitates bringing otherwise unaccounted employees into their books. The key deliverable of this Scheme is that the Government will pay the 8.33% contribution for all new employees for the first three years of their service.

Who Stands to Benefit?

There is a direct benefit to employers who will receive support from the government in this regard. The situation of unemployment also stands to get direct redressal through this instrument. What is of greatest significance is the fact that all workers will now stand to have access to a more sound social security cover.

Who does this cover?

Any employee who, prior to April 2016, has not been employed in an establishment that is registered under the EPFO, and does not have a UAN is covered. However, the employee must not have a salary exceeding 15,000/- per month.

Who is eligible?

-        It is mandatory that the organisation have a LIN(Labour Identification Number) allotted to them. This is available through the Shram Suvidha Portal. This is over and above the customary registration with the EPFO.

-        The new employees should have been added to the existing reference base by August 2016. In the case of new establishments or those who have just registered, the reference base is maintained at zero.

-        This is only applicable to those whose salary is under 15,000/- per month. The EPFO portal will help facilitate payments in the event that the employee does not possess a UAN.

-        The contribution can be availed by the employee through the government for a period of three years as long as the employee remains in the same organisation. The additional 3.67% EPF contribution is also available to those in the apparel sector.

The official notification is available on at

Also you would find complete explanation on

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