Cabinet approves EPF subsidy for new workers
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The scheme would until 2023 entail an outgo of ₹22,810 crore and would profit round 58.5 lakh workers.
The Union Cabinet on Wednesday authorized a scheme that may entail the federal government paying Employees Provident Fund (EPF) contributions of each the worker and employer for two years for new workers employed from October 1 to June 30, 2021.
Announcing the choice taken by the Cabinet at a gathering chaired by Prime Minister Narendra Modi, Labour and Employment Minister Santosh Kumar Gangwar stated the Atmanirbhar Bharat Rojgar Yojana would increase the economic system and formal employment.
The Cabinet authorized spending ₹1,548 crore for the present monetary 12 months, whereas the entire scheme would have an expenditure of ₹22,810 crore from 2020 to 2023, he stated. It would profit “lakhs” of workers, he added.
For corporations that make use of as much as 1,000 workers, the federal government would pay your entire contribution – 12% of wages paid by the worker and the employer every. For institutions with over 1,000 workers,it could pay the 12% share of the worker alone. The scheme would apply to these incomes lower than ₹15,000 a month.
The Employees Provident Fund Organisation would credit score the quantity into the Aadhaar-seeded accounts of the members and develop a software program for the scheme to make it clear, a authorities assertion stated.
The scheme had been introduced by Finance Minister Nirmala Sitharaman in November as an effort to spice up employment through the COVID-19 pandemic.
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