Pradhan Mantri Rojgar Protsahan Yojna (PMRPY)
(This Scheme has been extended for another three years)
The Importance and Scope of PMRPY
The country has witnessed an anomaly of sorts in the few last year. Despite trends and demographics being highly in favour of the country, and especially so for as far as the youth are concerned the figures that have translated have been alarming. The growth of jobs has not been to start of with. Accompanying this was the fact that the rate of growth of jobs has not been consistent. The last decade has seen an actual decline in the people employed in the labour force, and an alarming drop in the female population engaged. The greatest cause of concern perhaps. Has been the fact that the unemployment rate among the youth has been especially high. This is even true for those who have a minimum of a secondary level of education.
To help streamline processes and also incentive and improve the situation in organisations, the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) has been a significant step in not just encouraging organisations to employe a greater number of people, but also facilitates bringing otherwise unaccounted employees into their books. The key deliverable of this scheme is that the government will pay the 8.33% contribution for all new employees for the first three years of their service.
Who Stands to Benefit?
There is a direct benefit to employers who will receive support from the government in this regard. The situation of unemployment also stands to get direct redressal through this instrument. What is of greatest significance is the fact that all workers will now stand to have access to a more sound social security cover.
Who does this cover?
Any employee who prior to April 2016, has not been employed in an establishment that is registered under the Employee Provident Fund Organisation (EPFO) and does not have a UAN is covered. However, the employee must not have a salary exceeding ₹ 15,000/- per month.
Who is eligible?
It is mandatory that the organisation have a LIN (Labour Identification Number) allotted to them. This is available through the Sharm Suvidha Portal. This is over and above the customary registration with the Employee Provident Fund Organisation (EPFO).
The new employees should have been added to the existing reference base by August 2016. In the case of new establishments or those who have just registered, the reference base is maintained at zero.
This is only applicable to those whose salary is under ₹ 15,000/- per month. The Employee Provident Fund Organisation (EPFO) portal will help facilitate payments in the event that the employee does not possess a UAN.
The contribution can be availed by the employee through the government for a period of three years as long as three years as long as the employee remains in the same organisation.
Latest Amendment to the PMRPY Scheme: dated 24th of April, 2018
Government of India will pay the full employer’s contribution (EPF and EPS both) as admissible from time to time w.e.f. – 1-4-2018 for a period of three years to the new employees and to existing beneficiaries for their remaining period of three years through EPFO. The terminal date for registration of beneficiary through establishment is 31st March, 2019.