EPFO Wage Subsidy Scheme Created 39.59 Lakh Jobs: MoS Labour & Employment

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Minister of State for Labour & Employment, Rameshwar Teli in a written response informed the Parliament that, under the Atmanirbhar Bharat Rozgar Yojana, benefit has been provided to 39.59 lakh people through 1.16 lakh establishments till November 27, 2021.

The Atmanirbhar Bharat Rozgar Yojana is aimed at incentivising the creation of new employment opportunities during the COVID-19 recovery phase, wherein the government subsidises the employees’ and employers’ provident fund contributions, for employees joining an EPFO-registered establishment for a monthly wage less than Rs 15,000. This is to support particularly those who lost their job due to the pandemic and regained employment after October 1, 2020.

The scheme has twin goals. One to encourage the employers and business establishments to increase their hiring and two to help a large number of job seekers find employment in EPFO-registered establishments.

Under the Atmanirbhar Bharat Rozgar Yojana, for the establishments employing up to 1,000 workers, the central government provides employee’s contribution of 12 percent of the wages to their provident fund account and employer’s contribution at 12 percent, thereby covering a total of 24 percent of the wages for a period of two years.

For establishments employing over 1,000 workers, the government provides the employees’ EPF contribution of 12 percent.

The subsidy support gets credited into the Aadhar-seeded EPFO account of the new eligible employee.

Finance Minister Nirmala Sitharaman had announced the scheme on November 12, 2o20. It was to stay operational till June, 30, 2021, however it was extended till March 31, 2022, in June this year.

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