Pradhan Mantri Rojgar Protsahan Yojana Scheme
In this article, we will discuss in detail about the Pradhan Mantri Rozgar Protsahan Yojana, its benefits for employers and employees, eligibility criteria to apply through this scheme which are as follows:
What is Pradhan Mantri Rojgar Protsahan Yojana?
The objective of Pradhan Mantri Rojgar Pratsaan Yojana or PMRPY Yojana is to encourage employers to create employment, under which the government gives 8.33 percent of the Employer’s Pension Yojana to new employees for the first three years of their employment. It is also proposed to apply to those who are unemployed but also semi-skilled and unskilled.
The Ministry of Labor has implemented this scheme and it is running since August 2016. The PMRPY scheme was announced in the budget of 2016-17 with the main objective of promoting employment generation and a provision of Rs 1000 crore has been made for it. The target of this scheme is those workers who earn less than 15000 rupees per month. It encourages employers of small and medium enterprises and micro businesses to take advantage of this project.
Objective of PMRPY Yojana
The objective of the Pradhan Mantri Rojgar Pratsaan Yojana (PMRPY) is to encourage those employers who are registered with the Employees Provident Fund Organization (EPFO) for job creation. Apart from paying 8.33 per cent towards employees’ EPS contribution for the textile industry, the government also intends to pay 3.67 per cent towards employee provident fund for eligible employers of new employees.
This scheme has two objectives; On the one hand it promotes job creation by encouraging employers, and on the other hand, it provides employment to a large number of workers. A major benefit to these workers is that they get social security benefits in organized sectors.
Eligibility criteria to apply for Pradhan Mantri Rojgar Pratsahan Yojana?
The scheme is available to all establishments which are registered with the Employees Provident Fund Organization and fulfill the following conditions:Pradhan Mantri Rojgar Protsahan Yojana
The target of PMRPY is employees earning less than 15000 rupees per month and therefore, new employees who earn more than 15000 rupees per month are not eligible for this scheme. A new employee will be one who is not working regularly in an EPFO registered organization before 1st April, 2016. This is determined by the allotment of a new Aadhaar-linked Universal Account Number on or after April 1, 2016. If the employee does not have a new UAN, then the employee can avail the facility through the Provident Fund Organization portal.
The business should be registered with EPFO and should have a Labor Identification Number (LIN) which can be obtained under Shram Suvidha Portal. Under the PMPRY scheme, the Labor Identification Number will serve as the primary reference number for all official communications.
Employers and establishments applying for this scheme are solely responsible for the information provided by them. If at any time any information therein is found to be incorrect, it shall be deemed that the EPS payment/EPF payment for the textile industry was not made to the employees. This will make the employer liable for penalty under the Rules of Employees Provident Fund Scheme, 1952.
Eligible employers for this scheme must add new employees to the labor reference base to avail the benefits under the scheme. However, the employee reference base will be determined on the basis of the number of employees till 31st March, 2016 for whom the employer contributes 12 per cent (ie 3.67 per cent EPF and 8.33 per cent EPS). This is verified from the monthly ECR of March 2016.
Reference base for employees in establishments registering with EPFO after 1st April, 2016 will be treated as Nil/NL. This way the employer will be able to avail the PMRPY benefits for the new eligible employees.The government will continue to pay employers 8.33 percent for the first three years for eligible new employees, provided they remain in the same employment with the same employer. 8.33 per cent will be paid by the government after remittance of 3.67 per cent EPF contribution by the employer. Employer must submit PMRPY online form before 10th of next month to avoid any penalty.
What is the duration of PMRPY Yojana?
The Pradhan Mantri Rojgar Protsahan Yojana will be implemented for a period of three years. However, the Government of India will continue to contribute 8.33 percent to the EPS, which is payable to the employer for the next three years. Therefore, all eligible new employees will be covered under this scheme till the year 2019-2010
How can I get benefit under PMRPY scheme?
Following are the criteria for establishments to avail the benefit of this scheme:
The establishment should be registered with EPFO under the EPF Act 1952 and should have a valid Labor Identification Number (LIN);Pradhan Mantri Rojgar Protsahan Yojana
The company or business should have a valid bank account and details of the gateway through which payments are made to the establishment.
ECR should be submitted by the institution by March 2016.
The number of employees in the establishment should increase on or after April 1, 2016.
All new employees can be covered if they meet the requirements in any new establishment registered after April 1, 2016.Pradhan Mantri Rojgar Protsahan Yojana
What is the process of PMRPY Yojana?
Employers can log in with their LIN/EPFO Registration ID by visiting the PMRYP site.
The employer can then fill the organizational details compulsorily. It includes organizational PAN, nature of industry or industry classified as per National Industrial Classification Code NIC-2008, which is maintained by the Ministry of Statistics and Program Implementation.
The objective of this scheme is to provide employment to such new employees whose salary is less than 15000 rupees per month. New employment should clearly state the role and position, along with the employee’s joining date and exit date, if applicable. Pradhan Mantri Rojgar Protsahan Yojana
The PMRPY form should be submitted by the eligible employers by the end of each month, preferably by the 10th of the next month Pradhan Mantri Rojgar Protsahan Yojana.
If the employer fails to submit the required information on the PMRPY form online by the 10th of the following month, the employer will be deprived of the benefits under the PMRPY scheme for that particular month .Pradhan Mantri Rojgar Protsahan Yojana
The employer has to contribute 3.67 percent of EPF for new employees to determine the submission form. Pradhan Mantri Rojgar Protsahan Yojana
The Pradhan Mantri Rojgar Protsahan Yojana lasted for three years after its inception. its duration was from the year 2016 to 2019. However, the government will continue to contribute to EPS at the rate of 8.33 percent, which the employer has to pay for the next three years. Pradhan Mantri Rojgar Protsahan Yojana
