Finance Minister Nirmala Sitharaman on Thursday announced new subsidies for employers and employees under the Atmanirbhar Bharat Rozgar Yojana Subsidy. The minister said that EPFO-registered companies who bring in new employees will receive these benefits from the government.
She clarified that employees who were earlier not enrolled under the EPFO or people who lost their jobs between March 1 and September 30 this year would be considered as new employees. The scheme will be available for two years for employees hired between October 1 2020 and June 30 2021.
If companies that have a reference base of 50 employees hire minimum two new employees and if companies with reference base of more than 50 employees hire minimum five new employees, they will be eligible for the benefits.
LOWER COSTS, HIGHER TAKE HOME SALARY
The benefits would be in the form of the government's contribution towards EPF. For companies that have up to 1,000 employees, the government would contribute 12 per cent of the employee's contribution and 12 per cent of the employer's contribution. This means higher take home salary for employees and lower costs for employers.
The total would amount to 24 per cent of wages.
For companies that have more than 1,000 employees, the government would contribute 12 per cent of the employee's contribution.
FM Nirmala Sitharaman said that the way to avail the benefits is to open an Aadhaar-linked EPF account.