The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Scheme attempts to incentivize companies for job creation by paying the entire employers’ EPS contribution of 12 percent for new employees for the first three years of their employment, and it is intended to be extended to semi-skilled and unskilled unemployed people. The Ministry of Labour and Employment is in charge of the scheme, which has been in place since August 2016. The deadline for beneficiaries to register is March 31, 2019.

Objectives of Pradhan Mantri Rojgar Protsahan Yojana:

The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) is a scheme that rewards employers who register with the Employees’ Provident Fund Organisation (EPFO) for job creation by paying the full employer contribution to the Employee Pension Scheme (EPS) and Employees’ Provident Fund (EPF) for new employees with a new Universal Account Number (UAN).

This scheme has a twofold benefit: on the one hand, the employer is rewarded for growing the number of workers employed in the establishment, and on the other side, a huge number of people will be able to find work in such establishments.

Eligibility for the Scheme

  • Employees’ Provident Fund Organisation (EPFO)-registered establishments are eligible to apply for benefits under the plan if they meet the following criteria.
  • Employees’ Provident Fund Organisation (EPFO)-registered establishments shall also be assigned a Labour Identification Number (LN) through the Shram Suvidha Portal. For all communication under the PMRPY Scheme, the LIN shall be the primary reference number.
  • In order to receive benefits under the Scheme from August 2016 forward, the qualifying employer must have added new employees to the reference base of workers.
  • The number of employees against whom the employer has deposited the 12 percent (3.67 percent EPF + 8.33 percent EPS) with EPFO as of March 31, 2016, as indicated by the monthly ECR for March 2016. For example, in March 2016, an employer, M/s ABC Ltd., filed an ECR for the employers’ contribution for 45 employees/workers. The employer will be entitled to apply for PMRPY Scheme benefits for these 15 new employees if the establishment adds 15 new workers in April 2016, increasing the total number of employees to 60.
  • As stated in paragraph 5(e), the new employee is someone who has never worked in an EPFO-registered establishment or had a Universal Account Number in the past, i.e. before April 1, 2016.
  • The reference base for new establishments that come into existence/register with EPFO after April 1, 2016, will be Zero/NL employees. As a result, the business is able to take advantage of PMRPY advantages for new eligible employees.
  • Employees earning less than Rs 15,000 per month are eligible for the Pradhan mantri rojgar protsahan yojana Scheme. As a result, new employees who make more than Rs 15,000 per month will be ineligible. A new employee is someone who has not worked in an EPFO-registered establishment on a regular basis previous to April 1, 2016, and whose status will be determined by the assignment of a new Aadhaar seeded Universal Account Number (UAN) on or after April 1, 2016. If the new employee does not already have a UAN, the company will help them obtain one through the EPFO site.
  • Employers will continue to receive the government’s 12% contribution for these qualified new employees for the next three years, as long as they stay with the same firm. After the company has remitted the contribution for these new employees each month, the GOI will pay the contribution. The employer should submit the PMRPY online form as soon as possible, ideally by the 10th of the next month, to prevent any penalties on the EPF/EPS payment.
  • Employers/Establishments applying for the Scheme are solely responsible for the information uploaded; if the information submitted is found to be erroneous or false at any time, it will be presumed that the EPS and EPF payments for these employees have not been made. The employer will then be responsible for the dues and penalties set forth in the relevant sections of The Employees’ Provident Fund Scheme, 1952.
  • The PMRPY’s registration deadline for beneficiaries through an establishment is March 31, 2019.

The scheme’s duration

The Scheme will be in place for three years, with the Government of India continuing to pay the employer’s full contribution for the next three years. That is, until 2019-20, all new eligible employees will be covered by the PMRPY Scheme.

Instructions on how to take advantage of the PMRPY scheme’s benefits.

Eligibility Criteria for receiving benefits under the scheme by businesses

  • Under the EPF Act of 1952, the establishment must be registered with EPFO and have a valid LIN.
  • A valid PAN for the establishment is required.
  • The establishment must have a valid bank account, which must be entered and via which payments to the establishment can be made.
  • For the month of March 2016, the establishment should have reported their ECR.
  • On or after April 1, 2016, the establishment should have expanded the number of employees.
  • All new employees can be insured for new establishments registered -after April 1, 2016, as long as the necessary conditions are met.
  • Employees must meet certain requirements in order to be eligible for the PMRPY.
  • New employees must have started on or after April 1, 2016, and must not have previously worked in an EPF-registered establishment as a regular employee.
  • The employer must guarantee that the new employee has a valid UAN that is connected to Aadhaar. It can be obtained through the EPFO website if it is not available. EPFO will collect the mobile number and other contact information.
  • The new employee’s monthly salary should be less than Rs. 15,000 per month.
  • The new employee’s EPS contribution will be available for three years.
  • If an eligible establishment’s employment falls below the reference base, the establishment will not be eligible for the scheme during the months when employment falls below the reference base.

New employee verification:

The employer will upload the ECR file as described in ECR 2.0. The ECR will be accompanied by an online certificate from the company declaring that the Submission is solely for new employees with no prior experience and for freshly created positions.

The procedure that must be followed

  • Employers must use their LIN/EPFO registration ID to access the PMRPY portal.
  • Fill in the essential organizational information, including the Organizational PAN, according to the format. It is required to state the nature of the industry/sector as defined by the Ministry of Statistics and Program Implementation’s National Industrial Classification Code NIC-2008.

The appropriate NIC code is determined/assessed based on the value-added by the production of various products and services, or net revenue derived from various activities, i.e. the industry code of that establishment’s major manufactured product (output). In the event of multi-product businesses, the suitable NIC code is decided by the product category that contributes the most value to the business. If this is not attainable, classification can be done in terms of gross revenue ascribed to the businesses’ products or services, as well as the number of people employed in various activities.

  • New employment for workers earning less than Rs. 15,000/- per month would be covered by the Scheme. The job description (job role) for the new job must be given, as well as the date of hire and, if relevant, the date of departure.
  • Eligible employers must submit the PMRPY form at the end of each month, ideally by the 10th of the following month.
  • If the information on the PMRPY form is not submitted by the 10th of the following month, the employer will not be entitled to rewards under the PMRPY Scheme for that month.
  • The employer must have paid the EPS and EPF contributions for these new employees before the form may be submitted.

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