Pradhan Mantri Rojgar Protsahan Yojna
Introduction[edit]
In order to encourage and boost employment, the Government of India has launched Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) by providing incentives to employers. This scheme was launched on 9th of August, 2016. The objectives of the government is apparent from the scheme guidelines, that suggest that in order to compensate the low growth in jobs as compared to 7% to 8% growth in economy, new incentives are given to employers for boosting employment.
Necessity of the Scheme[edit]
In the Budget Speech 2016-17, it was stated that
“In order to incentivize creation of new jobs in the formal sector, Government of India will pay the Employee Pension Scheme contribution of 8.33% for all new employees enrolling in EPFO for the first three years of their employment. This will incentivize the employers to recruit unemployed persons and also to bring into the books the informal employees. In order to channelize this intervention towards the target group of semi-skilled and unskilled workers, the scheme will be applicable to those with salary up to Rs 15,000 per month. I have made a budget provision of Rs 1,000 crore for this scheme.”[1]
Scheme Analysis[edit]
The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Plan Scheme has been designed to incentivise employers by paying the 8.33% Employee Pension Scheme contribution of the employer for the new employment. This scheme has multiple benefit, Like increasing the employment base of workers in the establishment, and large number of workers will find jobs in such establishments.
Scheme Eligibility[edit]
- Entity must be registered with Employee Provident Funds Organisation.
- Entity must have Shram Suvidha LIN.
- Entity must have employed new employees. Employees must have UAN. Aadhar Number must be seeded with UAN.
- New employee salary must be up to Rs 15,000
- New Employee must have a Universal Account Number (Aadhaar seeded) issued after 01.04.2016 and not have worked in any EPFO registered establishment in the past.
Scheme will be operation till 2019-20. Government will continue incentive till 2019-20. Employers can enroll under this scheme from PMRPY Official Website.
Special Benefits For Textiles Sector[edit]
The Government in addition to the EPS contribution of 8.33%, will also contribute 3.67% of the EPF portion in case of employers indulged in textile (apparel) sector establishments dealing with the Manufacture of wearing apparel, in particular NIC Codes 1410 and 1430.[2]
Quantitative Details of Benefits Provided Till 23/04/2018[edit]
According to the Labour Ministry Website[3], Financial benefit of ₹6,648,524,438 (US$93 million), has been provided to around 38,98,029 employees working in 48,005 establishments.
References[edit]
- ↑ http://labour.gov.in/sites/default/files/PMRPY%20Revised%20Guidelines%20ver%202-1%20%282%29.pdf
- ↑ "PMRPY TEXTILE BENEFITS". pmrpy.gov.in. 29 April 2018.
- ↑ "Pradhan Mantri Rozgar Prtosahan Yojana (PMRPY) | Ministry of Labour & Employment". labour.gov.in. Retrieved 2018-04-28.
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