27/01/2022

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Cabinet approves Rs 22,810 cr EPF subsidy scheme for job creation

4 min read

The Cupboard on Wednesday accepted a proposal to provide employees’ provident fund (EPF) contribution to those using the services of added workforce for two yrs. This would price tag the government Rs one,584 crore in the present fiscal calendar year and Rs 22,810 crore in the course of the entire time period, from 2020 to 2023.

The proposal, Atmanirbhar Bharat Rojgar Yojana (ABRY), introduced before by finance minister Nirmala Sitharman as part of stimulus package deal, aimed at generating 5-6 million jobs by June subsequent calendar year, resources explained.

Beneath the package deal, the union government will provide subsidy for two yrs in respect of new staff engaged on or just after Oct this calendar year and upto June thirty, 2021, info and broadcasting minister Prakash Javdekar explained.

The government will pay out staff as effectively as companies contribution at twelve per cent of wages every to EPF in respect of new staff in institutions utilizing up to a thousand staff for two yrs.

However, it will pay out only employees’ share of EPF contribution at twelve per cnt of wages in respect of new staff in institutions utilizing extra than a thousand staff for two yrs.

An staff drawing monthly wage of considerably less than Rs 15,000, who was not operating in any establishment registered with the Employees’ Provident Fund Organisation (EPFO) before Oct just one, 2020, will be qualified for the reward.

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Any EPF member possessing common account quantity (UAN) drawing monthly wage of considerably less than Rs 15,000 who created exit from work in the course of Covid pandemic from March just one to September thirty this calendar year and did not sign up for work in any EPF covered establishment up to September thirty, will also be qualified to avail reward.

EPFO will credit history the contribution in Aadhaar seeded account of associates in electronic manner. The organisation will create a application for the plan and also create a method which is transparent and accountable at their close.

It will get the job done out modality to make sure that there is no overlapping of positive aspects beneath this plan with any other plan applied by EPFO.

This plan is a important enhancement from the preceding EPF subsidy plan introduced in March when the government experienced determined to only foot the EPF contribution of corporations with up to 100 workers and where by ninety per cent of the workers earned up to Rs 15,000 per thirty day period.

A critical facet of the plan is companies will have to incorporate at the very least two new staff if they have full workforce of considerably less than fifty and companies will have to use a bare minimum of five new staff if their workforce is extra than fifty. They will have to retain this bare minimum web addition to their workforce every thirty day period from Oct this calendar year to June 2021 to be qualified for the plan, resources explained.

Other choice:

Authorized a challenge to provide submarine optical fibre cable connectivity between mainland Kochi and Lakshadweep islands. (KLI Project). The approximated price tag of implementation is about Rs one,072 crore such as operational costs for five yrs. The Project would be funded by the Common Support Obligation Fund.

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