In the 2016–17 budget, the government introduced the Pradhan Mantri Rojgar Protsahan Yojana. By paying new hires 12 percent of the full employer’s EPS contribution for the first three years of their employment, the Pradhan Mantri Rojgar Protsahan Yojana (Pradhan Mantri Rojgar Protsahan Yojana in Hindi) seeks to incentivize employers to create jobs.
It is intended to be applicable to unemployed people who are unskilled and semi-skilled. Before, the government paid 8.33% of the employer’s contribution through the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).
Brief Information About The Prime Minister Employment Promotion Scheme (PMRPY)
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|Pradhan Mantri Rojgar Protsahan Yojana
|August 7, 2016
|the objective of the plan
|Under the scheme, employers will be provided an EPS contribution of 8.33 percent by the government for each new job created for the next three years.
It is targeted at workers who are earning wages of Rs 15,000 or less per month.
Eligibility Of Employers And Employees Under PMRPY
The Ministry of Labor and Employment has established the requirements for employers and employees to meet in order to qualify for PMRPY.
- Establishments are required by the EPF Act of 1952 to register with EPFO.
- An operational Organizational Permanent Account Number (PAN) is required for the formation.
- It is necessary for establishments to submit their March 2016 ECR.
- Businesses need to have all the details regarding the payment gateway and a working bank account.
- The establishment had to have added more workers on April 1, 2022, or after.
- The new hire’s legitimate UAN that is connected to Aadhaar must be verified by the company.
- For the employee to be eligible for benefits under PMRPY, they have to start working for the company on April 1, 2016, or later.
- The employee’s salary should not exceed Rs 15,000 per month.
Beneficiaries Of The Scheme
The following people may benefit from PMRPY:
- Under the EPF Act of 1952, all establishments enrolled with the Employees’ Provident Fund Organization.
- A current Labor Identification Number (LIN) is required for these establishments.
Duration of PMRPY
The three-year duration of the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) is set for its implementation. This implies that all newly hired personnel will be protected by the program through 2019–20.
Main Features Of The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)
The following are the Pradhan Mantri Rojgar Protsahan Yojana’s primary characteristics:
- Employers will get incentives under the system to boost employment, with 12% of the EPS payment (formerly 8.33%) reimbursed to the company for each new hire for the following three years.
- It is intended for employees making at least Rs 15,000 a month in pay.
- All of PMRPY’s payments are made online using the Aadhaar system.
Significance of the PMRPY
Pradhan Mantri Rojgar Protsahan Yojana has two advantages:
- Employers will be incentivized to expand their workforce by paying a 12% EPF contribution, which they would have otherwise been responsible for paying.
- PMRPY will support hiring employees in these types of businesses.
- Employees will be eligible for provident funds, pensions, and life insurance as well as other organized sector social security benefits.