Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

March 18, 2018

 

Ministry: Ministry of Labour and Employment

 

Objective of the Scheme: 

  1. The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Plan Scheme has been designed to incentivise employers for generation of new employment, where Government of India will be paying the 8.33% EPS contribution of the employer for the new employment.

  2. This scheme has a dual benefit, where, on the one hand, the employer is incentivised for increasing the employment base of workers in the establishment, and on the other hand, a large number of workers will find jobs in such establishments.

  3. A direct benefit is that these workers will have access to social security benefits of the organized sector.

System without PMRPY Scheme:

  1. At present, employers pay 12 per cent as the employee’s share and 9.49 per cent as the employer’s share towards various schemes under the EPFO that cover all establishments hiring at least 20 workers.

Eligibility Criteria of  the Scheme:

  1. All establishments which are registered with Employee Provident Fund Organisation (EPFO) can avail benefits subject to the following conditions.

    1. Establishment should have Labour identification number (LIN) allotted to them under Shram Suvidha Portal.

    2. Eligible employer must have added new employees to his establishments. The New employee should have a Universal Account number (UAN) issued after 1st April 2016. Also, UAN should be seeded with AADHAR.

    3. Employee must be earning upto (and including) Rs 15000 per month.

Industry sector/sub-sectors covered under the Scheme:

All sectors are covered under the scheme as updated by Government on 29 March 2018.

 

Benefits:

  1. The employers will continue to get the 8.33% contribution paid by the Government for these eligible new employees for the next 3 years, from the date of acquiring a new UAN or 09.08.2016, whichever is later, provided they continue in employment in any EPFO registered establishment. To clarify, if such new employee changes his job to a new establishment, the new establishment can avail of the scheme benefits by registering this employee in the PMRPY Portal for the balance period. :

Deadline of the Scheme:

  1. The Scheme will be in operation for a period of 3 years and the Government of India will continue to pay the 8.33% EPS contribution to be made by the employer for the next 3 years. That is, all new eligible employees will be covered under the PMRPY Scheme till 2019- 20.

 

Challenges:

  1. The scheme gives incentive for adding new employees to the scheme but is silent on retaining of employees. Thus it might not lead to overall increase in employment scenario of the country.

  2. There is no provision for skill set of the employee and thus might lead to no skill development of the population which will hamper their future employment.

 

 

 

 

 

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