The “Atmanirbhar Bharat Rozgar Yojana” is being introduced as part of Atmanirbhar Bharat Package 3.0 to increase employment in the formal sector and encourage the establishment of new employment possibilities. The program is scheduled to run from 2020 to 2023.
Beneficiaries (new hires) of the Plan:
- An employee who was not previously employed in an EPFO-registered establishment and who did not have a Universal Account Number (UAN) before October 1, 2020, and who begins employment in any establishment on or after October 1, 2020, through March 31, 2022, and who is given an Aadhaar-validated UAN
- Any EPF member who has previously been assigned a UAN and who terminated employment between 01.03.2020 and 30.09.2020 (Covid Pandemic) and who re-enters employment between 01.10.2020 and 31.03.2022.
- The Central Government will pay the incentive by making an upfront credit to the new hires’ UANs.
- For new employee and qualifying employer registration: from October 1, 2020, until March 31, 2022
- 24 wage months after the date of the new employee’s registration are required for the payment of incentives in the form of EPF contributions.
Qualifications for Establishments
Establishments registered with EPFO shall comply with the following if they increase their staff base above the reference base as of September 2020:
- If the reference base is 50 employees or less, at least two new hires are required.
- If the reference base has more than 50 employees, at least five new workers are required.
For new hires hired on or after October 1, 2020, and up to June 30, 2021, the Indian government will offer a two-year subsidy at the following rate.
- Businesses with up to 1000 employees: Contributions from both the employer and the employee total 24 percent of wages, or 12 percent of wages each.
- Establishments with more than 1000 staff members: Only employee contributions to the EPF (12 percent of EPF wages)
- The qualifying new employee’s Aadhaar-seeded EPFO Account (UAN) will receive an upfront credit for the subsidy support.
Instructions and Process for Pursuing Benefits Under This Scheme
EPFO has set up an electronic facility on the Employer’s site to adopt ABRY.
- To register under ABRY, the employer must amend Form 5A and disclose the employee reference list via a link in the employer’s login on the EPFO Unified Portal.
- Before registering an employee as a “new employee” under ABRY, the employer must have a declaration on prior membership from the employee joining the establishment and verify it.
- Employers must file a declaration and ECR on behalf of each employee in order to receive benefits on a monthly basis.
- Within 60 days of the end of each wage month, the employer must submit one Electronic Challan cum Return (ECR) for each employee, including any new hires. However, the employer is responsible for the ECR’s late filing and any ensuing interest payments required by Section 7Q.
- It is not permitted to claim any improved benefits at a later date based on any revision, correction, or change to such an ECR.
- Any new employee’s monthly salary are to be paid in full by the employer without any deductions for the employee’s part of EPF contributions.
- Establishments acting as independent contractors who are supplying labor to one or more major employers are not entitled to the employers’ share under this Scheme if the principal employer is.
- Employers and Establishments are accountable for the accuracy of any information provided when requesting an ABRY benefit.