The government has assured to supply subsidy for two years in respect of new personnel engaged on or immediately after 1 October 2020, up to 30 June 2021.
Prime Minister Narendra Modi-led Union Cabinet currently authorized an expenditure of Rs 1,584 crore for the present economic year for Atmanirbhar Bharat RojgarYojana (ABRY). The cabinet has also authorized Rs 22,810 crore for the whole scheme period 2020-2023. The Rozgar Yojana scheme is introduced to increase employment in the formal sector and incentivize the creation of new employment possibilities for the duration of the Covid recovery phase beneath the Atmanirbhar Bharat package. The scheme requires a lot of attributes, such as subsidy to firms for new personnel, to spur job creation, which was severely hit due to the lockdown known as to arrest the spread of the coronavirus pandemic.
The government has assured to supply subsidy for two years in respect of new personnel engaged on or immediately after 1 October 2020, up to 30 June 2021. Also, it will spend each 12 per cent employees’ contribution and 12 per cent employers’ contribution, that is, 24 per cent of wages towards EPF in respect of new personnel in providers employing up to 1,000 personnel for two years. However, for the firms employing much more than 1,000 personnel, the government will spend only employees’ share of EPF contribution.
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Employees drawing significantly less than Rs 15,000 as month-to-month wage and who have been not operating in any enterprise registered with the Employees’ Provident Fund Organisation (EPFO) just before 1 October 2020 will be eligible for the advantage. Further, any EPF member possessing Universal Account Number (UAN) drawing month-to-month wage of significantly less than Rs 15000 who produced exit from employment for the duration of Covid pandemic from 1 March 2020 to 30 September 2020 and did not join employment in any EPF covered firm will also be eligible to avail advantage.
Meanwhile, the government is searching for support from the business chambers to create jobs beneath the new scheme. During the pandemic, the government also utilized schemes such as MGNREGA to employ a lot of migrant workers who suffered job losses due to the strict nationwide lockdown.