Pradhan Mantri Rozgar Protsahan: Govt pays contribution of 12% towards EPFO, key things to know

New Delhi: Pradhan Mantri Rozgar Protsahan Yojana is a scheme under which government pays full employers’ contribution of 12 per cent towards the Employees’ Provident Fund (EPF) and Employees’ Pension Scheme (EPS), for three years in respect of new employees who have been registered with the EPFO on or after April 1, 2016, with a monthly salary up to Rs 15,000.

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This entire system is online and Aadhaar based where there is no human interface in the implementation of the scheme. Earlier, the benefit was applicable to the employer’s contribution towards EPS only. Given below are key things to know-

The eligible employer must have added new employees to the reference base of workers in order to avail benefits under the scheme from August 2016 onwards. The reference base of workers will be determined by the number of employees against whom the employer has deposited the 12 per cent (3.67 per cent EPF + 8.33 per cent EPS) with EPFO as on March 31, 2016, as ascertained from the monthly ECR for March 2016.

For new establishment getting registered with EPFO after April 1, 2016, the reference base will be taken as zero or NIL employees. Thus, the employer can avail of PMRPY benefits for all new eligible employees.

This scheme is targeted for employees earning a salary less than Rs 15,000 per month. Therefore, new employees earning wages over Rs 15,000 per month will not be eligible to avail of this scheme. According to the Pradhan Mantri Rozgar Protsahan Yojana website, “A new employee is one who has not been working in an EPFO registered establishment on a regular basis prior to April 1 2016, and will be determined by the allocation of a new Aadhaar seeded Universal Account Number (UAN) on or after April 1, 2016. In case the new employee does not have a new UAN, the employer will facilitate this through the EPFO portal.”

This scheme provides dual benefits, where the employer is incentivised for increasing the employment base and a large number of workers find jobs. However, a direct benefit is that these workers have access to the social benefits of the organised sector.

It may be noted that the employers will continue to get the 8.33 per cent contribution paid by the government for these eligible new employees for the next 3 years, provided they continue in employment by the same employer. The 8.33 per cent contribution will be paid by the government after the employer has remitted the 3.67 per cent EPF contribution for these new employees each month. To avoid any penalty on the EPF or EPS contribution, the employer is advised to submit the PMRPY online form at the earliest, preferably by the 10th of the following month.

 

Source:-timesnownews

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