In order to incentivise the employers for new employment generation, the Government of India designed the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Scheme. Under the scheme, the employers would be paid the EPS contribution of 8.33% for every new employment created, by the government. The scheme has been operational since August 2016. The scheme is being implemented by the Ministry of Labour and Employment.
The Scheme will be in operation for a period of 3 years and the Government of India will continue to pay the 8.33% EPS contribution to be made by the employer for the next 3 years. That is, all new eligible employees will be covered under the PMRPY Scheme till 2019- 20.
All establishments registered with Employees’ Provident Fund Organisation (EPFO) under EPF Act 1952 can apply for availing benefits under the scheme. They need to have a valid Labour identification Number (LN) allotted to them under the Shram Suvidha Portal.
Benefits of the Scheme:
The scheme provides a direct benefit of access to the social security benefits of the organised sector to the workers. Apart from this, there are dual benefits of implementing this scheme.
- The employer is incentivised for increasing the employment base of workers in the establishment.
- A huge number of workers would find employment in such establishments.
Recent updates to the scheme:
The cabinet Committee on Economic Affairs chaired by the Prime Minister has now given approval for enhancing the scope of the scheme. Now the government will contribute full admissible contribution for the first 3 years from the date of registration of the new employee for all the sectors inclusive of the existing beneficiaries for their remaining period of 3 years.