India / Atmanirbhar Bharat Rozgar Yojana launched to incentivise job creation by firms

New Delhi: Finance Minister Nirmala Sitharaman has unveiled a new scheme to incentivise job creation, as part of Atmanirbhar 3.0 stimulus measures announced to boost economic growth. The Atma Nirbhar Bharat Rozgar Yojana will generate new employment and more job creation, the finance minister asserted.

Every Employees' Provident Fund Organisation (EPFO) registered organisation that recruits new employees who were never covered under EPFO or those who lost their jobs between March 1 and September 30 this year, will receive benefits under the aegis of the Atma Nirbhar Bharat Rozgar Yojana. The scheme will be effective from October 1, 2020 and will be active till June 30, 2021.

Establishments with less than 50 employees must recruit at least 2 new employees and organisations with more than 50 employees must employ at least 5 new employees. The month of September will be considered as the base for the scheme.

For organisations with up to 1,000 employees who earn up to ₹ 15,000 per month and are registered under EPFO, the 12 per cent contribution of the employees and 12 per cent from the employer - amounting to a total 24 per cent - will be borne entirely by the Central government.