Under the scheme, every registered establishment under the Employees’ Provident Fund Organisation that brings in new employees into its fold or employees who have lost jobs between March 1, 2020 and September 30, 2020 rejoin work, will be eligible to subsidy of 24% or 12% each of the employees’ and employers contribution for each new candidate enrolled.
The new candidates who enroll between October 1, 2020 and till June 30, 2021 will get the benefits under the scheme for a period of two years.
Establishments with less than 50 employees must recruit at least two new employees and organisations with more than 50 employees must employ at least five new employees. The month of September will be considered as the base for the scheme.
For organisations with up to 1,000 employees who earn up to Rs 15,000 per month and are registered under EPFO, the 12% contribution of the employees and 12% from the employer – amounting to a total 24% will be borne entirely by the central government.
Central government will provide subsidy for two years in respect of new eligible employees engaged on or after October 1, 2020, finance minister Nirmala Siutharama said. “Subsidy will be credited upfront in Aadhaar-seeded EPFO accounts of the eligible new employee,” she added.
For the unorganised workers, the government has announced additional outlay of Rs 10,000 crore that could be used to boost employment generation spoken under Garib Kalyan Rojgar Abhiyan or even under the Mahatma Gandhi National Rural Employment Guarantee scheme.