A Light in the Tunnel: Aatma Nirbhar Bharat Rozgar Yojna (ABRY) gets Union Cabinet’s Approval
Amid the chaotic broadcasting of the Kisan Andolan Stories and Bharat Bands, one good and positive news which has been missed by almost all the news channels and national dailies is the Union Cabinet’s Approval of Aatma Nirbhar Bharat Rozgar Yojna (ABRY) on 9.12.2020.
Aatma Nirbhar Bharat Rozgar Yojna (ABRY) was announced under the financial stimulus package Aatma Nirbhar Bharat Package 3.0, by the Union Finance Minister Smt. Nirmala Sitharaman on the occasion of Dhanteras on 9.11.2020.
Key Highlights of Aatma Nirbhar Bharat Rozgar Yojna (ABRY)
(i) Purpose of the Scheme
The primary objective of ‘Aatma Nirbhar Bharat Rozgar Yojna’ is to incentivize job creation and new employment opportunities during the Covid 19 recovery phase.
(ii) Benefits available in the Scheme
Under this Scheme, the Central Government will provide PF Subsidy for two years in respect of new eligible employees engaged on or after 1.10.2020 and upto 30.6.2021, at the following scales:
Establishments employing upto 1000 employees: Employee’s contributions (12% of wages) & Employer’s contributions (12% of wages) totalling 24% of wages.
Establishments employing more than 1000 employees: Only Employee’s EPF Contributions (12% of EPF Wages).
(iii) Manner & Mode of PF Subsidy Disbursement
The PF Subsidy Support will get credited upfront in Aadhar seeded EPFO Account (UAN) of eligible new employee.
(iv) Coverage of the Scheme
More than 95% of all establishments and 65% of all employees in formal sector are estimated to be covered in first category, wherein EPF contributions will be given by Government by way of Subsidy Support.
(v) Beneficiaries (New Employees) under the Scheme
1. an employee drawing monthly wage of less than Rs. 15000/- who was not working in any establishment registered with the EPFO before 1st October, 2020, and did not have a Universal Account Number or EPF member account number prior to 1st October 2020, will be eligible for the benefits of the Scheme.
2. Any EPF member possessing Universal Account Number (UAN) drawing monthly wage of less than Rs. 15000/- who made exit from employment during Covid pandemic from 01.03.2020 to 30.09.2020 and did not join employment in any EPF covered establishment up to 30.09.2020 will also be eligible to avail the benefits of the Scheme.
In simple words:
a. Any new employee joining employment in EPFO registered establishments on monthly wages less than Rs. 15,000/-.
b. EPF members drawing monthly wage of less than Rs. 15,000/- who made exit from employment during Covid pandemic from 1.3.2020 to 30.9.2020 and is employed on or after 1.10.2020.
(vi) Eligible Establishments under the Scheme
Eligibility Criteria for Establishments:
a. Establishments registered with EPFO if they add new employees compared to reference base of employees as in September, 2020 as under:
Minimum of two new employees if reference base is 50 employees or less.
Minimum of five new employees if reference base is more than 50 employees.
b. Establishments registering with EPFO after commencement of Scheme to get subsidy for all new employees.
(vii) Approved Layout
The Union Cabinet has approved an expenditure of Rs. 1,584 crore for the current financial year and Rs.22,810 crore for the entire Scheme period i.e. 2020-2023.