Updated: June 9, 2018 2:14:50 am
The government is adding about 5.5 lakh beneficiaries a month under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), a scheme started to incentivise employers for generation of new employment wherein the Government of India pays the employer’s contribution of Employees’ Pension Scheme (EPS) for the new employment. The annual average addition of workers under the scheme is expected to be over 66 lakh, a senior labour ministry official said.
“We are getting a very positive response so far from the scheme with addition of 5.5 lakh workers under the PMRPY scheme in a month. At this rate, for the whole year, we are likely to add 66 lakh workers,” the official said.
The PMRPY scheme was started in August 2016. Under the scheme, the government was paying the employers’ contribution of 8.33 per cent of wages to the Employees’ Pension Scheme (EPS) for new employees having — a new Universal Account Number (UAN) and who joined on or after April 1, 2016 with salary up to Rs 15,000 per month — for first three years. Textiles (apparel and made-up) sector is also eligible for 3.67 per cent EPF (Employees’ Provident Fund) contribution of employers in addition to the 8.33 per cent EPS contribution.
In March this year, the Cabinet Committee on Economic Affairs approved enhancing the scope of PMRPY scheme. The government now contributes the employers’ full admissible contribution for the first three years from the date of registration of the new employee for all the sectors including existing beneficiaries for their remaining period of three years.
Till March, about 31 lakh beneficiaries were added to the formal employment involving an expenditure of more than Rs 500 crore. In Union Budget for 2018-19, an amount of Rs 1,652 crore has been allocated for the scheme, higher than revised estimate of Rs 500 crore and Budget estimate of Rs 1,000 crore in 2017-18. The scheme is aimed at incentivising increasing the employment base of workers in the establishments and facilitate access to social security benefits of the organised sector.
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