Amid the corona crisis, the government is aiming to create at least 50-60 lakh jobs by June next year in the formal sector through its Atma Nirbhar Bharat Rozgar Yojana (ABRY), said Finance Minister Nirmala Sitharaman last week. Moreover, Finance Minister has announced Atma Nirbhar Bharat Rozgar Yojana on November 12 keeping in the mind the current scenario of corona crisis and job loses..
According to the Employees' Provident Fund Organisation (EPFO) data, around 20 lakh jobs were lost in the initial months of the coronavirus pandemic, thus, the government is targeting 50-60 lakh jobs by June 2021.
"We are targeting 5-6 million jobs by June next year. The Employees' Provident Fund Organisation (EPFO) data shows that around 2 million jobs were lost in the initial months of the pandemic," told a government official to media reports.
Private Companies have to maintain a minimum net addition to their workforce
According to new rules, the private companies will have to maintain a minimum net addition to their workforce each month from October 2020-June 2021 to get the Employees' Provident Fund (EPF) subsidy for the new recruits, adding that the Centre will monitor the payroll of all such private firms.
Moreover, an employer will have to give jobs to two new employees if the workforce of the firm was less than 50 in September this year, says government order.
On the other hand, if the workforce is 50 or above then at least five employees must be hired by the company. However, this is only applicable for employees with a monthly wage of up to Rs 15,000. The official said firms will have to ensure the threshold for minimum job creation is maintained each month.
"If the minimum job addition becomes less than five in a month for a firm employing at least 50 workers, the subsidy (EPF) will be discontinued for that particular month," the official told the publication.
According to new EPFO rules, employers and employees contribute 12 per cent each of a worker's wage towards schemes under the EPFO.
The FM announced a subsidy for retirement fund contributions by employees as well as employers for two years.
24% of wages would be Given to Establishments for 2 years
Employee contributions (12 per cent of wages) and employer contributions (12 per cent of wages) totaling 24 per cent of wages would be given to establishments for two years, she said.
The Atma Nirbhar Bharat Rozgar Yojana will cover any new employee joining employment in an EPFO-registered establishment on monthly wages less than Rs 15,000, says finance ministry.
It will also cover EPF members drawing monthly wages of less than Rs 15,000, who made an exit from employment during the COVID-19 pandemic from March 1, 2020, and are employed on or after October 1, 2020.
The scheme would cover establishments registered with EPFO if they add new employees compared to the reference base (of employees) as in September 2020 The scheme would be operational till June 30, 2021.
Atma Nirbhar Bharat Rozgar Yojana would be operational till June 30, 2021 which was launched in 12 November keeping in mind the current corona crisis.
