Finance Minister announces new employment scheme with EPFO support for 2 years
Union Finance Minister Nirmala Sitharaman on Thursday announced 'Atmanirbhar Bharat Rozgar Yojana' to incentivise creation of new employment opportunities during the Covid-recovery phase.
The employment scheme effective from October 1 will be applicable to eligible new employees joining the EPFO-registered establishments and for those who exited these concerns during the COVID pandemic (March 1-September 30, 2020) and drawing monthly wages of less than Rs 15,000.
Under the scheme, the central government will subsidise the Employees' Provident Fund (EPF) contributions for two years.
The Centre will provide 12 per cent of the contributions of both employers and the employee for establishments with up to 1,000 employees.
In the case of establishments with over 1,000 employees, the Centre will only subsidise 12 per cent of the employees' EPF contributions.
The establishments eligible for the scheme include those that added a specified number of employees compared with the base month of September 2020.