Contributions of Employee and Employer under EPF – Lok Sabha QA
Contributions of Employee and Employer under EPF will be paid by the Government for two years for new workers hired from October, 2020 to June 30, 2021
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
UNSTARRED QUESTION NO: 3111
ANSWERED ON: 15.03.2021
Contributions of Employee and Employer
Vellalath Kochukrishnan Nair. Sreekandan
Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:-
(a) whether it is true that the Government has approved a scheme by which the contributions of both the employee and employer would by paid by the Government for two years for new workers hired from October, 2020 to June 30, 2021;
(b) whether it is also true that the scheme will apply to those earning less than Rs.15,000 per month?
(c) if so, the details thereof;
(d) whether it is also true that the Atmanirbhar Bharat Rojgar Yojana would boost the formal employment; and
(e) if so, the details thereof?
MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)
(a) to (e): Aatmanirbhar Bharat Rozgar Yojana (ABRY) has been launched to incentivize employers for creation of new employment along with social security benefits and restoration of loss of employment during COVID-19 pandemic. Under the scheme;
- An employee drawing monthly wage of less than Rs. 15000/- who was not working in any establishment registered with the Employees’ Provident Fund Organization (EPFO) before 1st October, 2020 and did not have a Universal Account Number or EPF Member account number prior to 1st October 2020 is eligible for the benefit.
- Any EPF member possessing Universal Account Number (UAN) drawing monthly wage of less than Rs. 15000/- who made exit from employment during Covid pandemic from 01.03.2020 to 30.09.2020 and did not join employment in any EPF covered establishment up to 30.09.2020 is also eligible to avail benefit.
This scheme being implemented through the Employees’ Provident Fund Organisation (EPFO), reduces the financial burden of the employers and will encourage them to hire more workers. Under ABRY, Government of India is crediting for a period of two years, both the employees’ share (12% of wages) and employers’ share (12% of wages) of contribution payable or only the employees’ share, depending on employment strength of the EPFO registered establishments. The scheme has commenced from 1st October 2020 and shall remain open for registration of eligible employers and new employees upto 30th June 2021. Government will pay the subsidy for two years from the date of registration.
Source: Lok Sabha