Tribune News Service
New Delhi, December 9
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday gave approval for “Aatmanirbhar Bharat Rojgar Yojana” to give a push to employment opportunities in the formal sector with a goal to fast rev up economy, which has been sapped by the Covid-19 pandemic. The move aims to incentivise creation of new employment opportunities during the Covid recovery phase under the Centre’s “Aatmanirbhar Bharat Package 3.0”.
The move is also seen a detour to economically empower people and increase their purchasing to engine the demand supply to get over the post-Covid which is comparatively bearish. The Cabinet approved an expenditure of Rs 1,584 crore for the current financial year and Rs 22,810 crore for the entire scheme period — 2020-2023.
“The scheme will provide benefits to lakhs of people in the formal/organised sector,” Union Labour Minister Santosh Kumar Gangwar said.
Under the scheme, the government will provide subsidy for two years in respect of new employees engaged on or after October 1, 2020 and up to June 30, 2021.
It will pay both 12 per cent employees’ contribution and 12 per cent employers’ contribution i.e. 24 per cent of wages towards EPF in respect of new employees in establishments employing up to 1,000 employees for two years.
It will pay only employees’ share of EPF contribution i.e. 12 per cent of wages in respect of new employees in establishments employing more than 1,000 employees for two years.