The government of India on Monday extended the wage subsidy scheme till 31 March 2022 via the Employees Provident Fund Organisation (EPFO) under Aatma Nirbhar Bharat Rozgar Yojana to boost job creation at the lower end of the salary structure informal jobs.
Aatma Nirbhar Bharat Rozgar Yojana was launched on 1st Oct, 2020. It incentivises employers for the creation of new employment, restoration of loss of employment through EPFO.
Under the scheme, subsidy is provided for two years from registration for new employees drawing monthly wages less than Rs. 15,000 for both Employer’s and Employee’s share of contribution (total 24% of wages) for establishment strength upto 1,000 employees; and only employee’s share (12% of wages) in case of establishment strength of more than 1,000.
The benefit of Rs. 902 crore has been given to 21.42 lakh beneficiaries of 79,577 establishments under the scheme till 18.06.2021. The government has decided to extend the date of registration under the scheme from 30.6.2021 to 31.03.2022.
The move will also increase take home pay of new employees or those who are re-joining after being retrenched during covid-19 pandemic and also reduce employee cost of companies as the statutory EPF dues will be taken care by the government.
The scheme which was coming to an end for fresh enrolment by 30 June 2021 will now continue till 31 March 2022.
Notably, all employees with a maximum salary of Rs.15000 per month who joined or will be joining between 1 Oct 2020 and 31 March 2022, shall get EPF wage subsidy from the government.
This decision will cover nearly 95% of all the employers and could boost job creation at a time when unemployment is high and millions of people have lost their jobs. Many more have seen a reduction in income.
Finance minister Nirmala Sitharaman said Rs. 22,500 crore was allocated for the scheme in 2020 when it was first announced with an enrolment timeline of until 30 June.
As of 18 June 2021, 2.14 million workers have benefited from the scheme.
