The Aatmanirbhar Bharat Rozgar Yojana (ABRY) is a government scheme launched as part of the Aatmanirbhar Bharat 3.0 package. It aims to incentivize the creation of new employment opportunities during the COVID-19 recovery phase by providing financial assistance to employers registered with the Employees’ Provident Fund Organisation (EPFO). This piece explores the scheme’s guidelines, objectives, and eligibility criteria.
Introduction to ABRY
The ABRY was introduced to incentivize employers to recruit unemployed individuals, including those who lost their jobs during the COVID-19 pandemic. The scheme provides financial support to employers by covering both the employer’s and employees’ share of contributions to the Employees’ Provident Fund (EPF) or only the employees’ share, depending on the establishment’s size.
Objectives of the ABRY
The primary objectives of the ABRY are:
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To incentivize employers registered with EPFO to create new employment opportunities.
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To support the re-employment of individuals from low-wage brackets who lost their jobs during the COVID-19 pandemic.
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To provide financial assistance by covering EPF contributions for eligible new employees.
Validity of the Scheme
The ABRY is valid for:
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Registration of Employers and New Employees: From October 1, 2020, to June 30, 2021.
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Benefit Period: Twenty-four months from the date of registration of a new employee, but not later than June 30, 2023.
Definitions
Key terms used in the ABRY include:
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New Employee: An employee drawing wages less than ₹15,000 per month, who either did not have a Universal Account Number (UAN) before October 1, 2020, or who exited employment between March 1, 2020, and September 30, 2020.
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Establishment: An entity registered with EPFO, including all its departments and branches.
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Ownership Returns: Returns in Form 5A prescribed under the EPF Scheme, 1952.
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Universal Account Number (UAN): An Aadhaar-validated unique account number allotted by EPFO.
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Wages: Wages on which contributions are payable under the EPF & MP Act, 1952.
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Wage Month: The calendar month for which wages are payable.
Reference Base of Employees
The reference base of employees is used to determine an establishment’s eligibility:
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Existing Establishments: The number of employees for whom the employer remitted contributions for the wage month of September 2020.
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New Establishments: The reference base is treated as zero for establishments registered with EPFO between October 1, 2020, and June 30, 2021.
Eligibility Criteria for Establishments
To be eligible for the ABRY, establishments must:
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Existing Establishments: Employ a minimum of two new employees (if the reference base is ≤ 50) or five new employees (if the reference base is > 50).
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Maintain Employee Count: Continue to employ the minimum number of additional new employees and retain the reference base of employees.
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New Establishments: Establishments registered between October 1, 2020, and June 30, 2021, with less than 20 employees, must maintain this number to remain eligible.
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Contractors: Establishments working as contractors cannot claim benefits if they are already claimed or received from the principal employer.
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Single Legal Entity: Establishments with multiple code numbers will have all employees included for eligibility criteria.
Eligibility Criteria for Employees
New employees eligible for benefits under ABRY must:
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Be registered by an eligible employer between October 1, 2020, and June 30, 2021.
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Have an Aadhaar-seeded Universal Account Number (UAN).
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Have monthly wages below ₹15,000.
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Not be receiving benefits under PMRPY/PMPRPY 2016.
Amount of Benefit
The Central Government will provide subsidy for twenty-four wage months:
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Establishments with ≤ 1000 Employees: Both the employer’s and employee’s share of contribution (24% of wages).
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Establishments with > 1000 Employees: Only the employee’s share of contribution (12% of wages).
Procedure for Availing Benefits
To avail benefits under the ABRY, employers must:
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Register the establishment on the EPFO Unified Portal.
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Ensure that the updated ownership return is filed with EPFO.
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Obtain a declaration from the new employee regarding their previous membership.
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File Electronic Challan cum Return (ECR) for each wage month.
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Not make any deductions from employees’ wages towards EPF contributions.
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Upload a certificate/declaration with the ECR.
Modality for Implementation
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EPFO will develop software for implementing the scheme.
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Funds will be credited to the Aadhaar-seeded UAN accounts of eligible employees.
Monitoring and Evaluation
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EPFO will monitor the implementation of the scheme on a weekly basis.
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EPFO will provide monthly reports to the Ministry of Labour & Employment.
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A third-party evaluation will be conducted by EPFO within three months of the scheme’s closure.
Conclusion
The Aatmanirbhar Bharat Rozgar Yojana (ABRY) is a significant initiative to boost employment generation and support economic recovery during the COVID-19 pandemic. By providing financial incentives to employers, the scheme aims to create new job opportunities and encourage the re-employment of those who lost their jobs. The ABRY reflects the government’s commitment to promoting a self-reliant India and ensuring the well-being of its workforce.