Apply for Atmanirbhar Bharat Rozgar Yojana

The Atmanirbhar Bharat Rozgar Yojana (ABRY) was introduced as part of the Atmanirbhar Bharat Package 3.0 to stimulate job creation in the formal sector during India’s recovery from the COVID-19 pandemic. This scheme incentivizes employers to generate new job opportunities while directly benefiting employees through subsidies in their provident fund contributions. Operational between 2020 and 2023, the scheme aims to address unemployment caused by the pandemic and support the vision of a self-reliant India.

Objectives of the Atmanirbhar Bharat Rozgar Yojana

The primary goal of ABRY is to incentivize employers to recruit more employees, particularly those impacted by the pandemic. It seeks to achieve the following:

1. Boost employment in the formal sector by encouraging establishments to expand their workforce.
2. Support new employees who are entering the workforce or rejoining after a break caused by COVID-19-related disruptions.
3. Enhance social security for new employees by subsidizing provident fund contributions, ensuring financial stability during uncertain times.

Key Features of the Scheme

Operational Period

The scheme covers a specific time frame for implementation:

• Start Date: October 1, 2020
• End Date for Registrations: March 31, 2022
• Duration of Incentive Payments: Subsidies are provided for up to 24 wage months from the date of registration of new employees.

Eligibility Criteria for Beneficiaries

The scheme targets two categories of employees:

1. New Employees:
   • Monthly wages of less than ₹15,000.
   • Not employed in any EPFO-registered establishment prior to October 1, 2020.
   • Must possess an Aadhaar-validated Universal Account Number (UAN).
   • Must have joined an EPFO-registered establishment between October 1, 2020, and March 31, 2022.
2. Existing EPF Members Rejoining the Workforce:
   • Employees who had exited employment between March 1, 2020, and September 30, 2020, due to the COVID-19 pandemic.
   • Must have rejoined an EPFO-registered establishment during the period October 1, 2020, to March 31, 2022.

For both categories, the central government directly credits the subsidy into the employees’ Aadhaar-seeded UANs.

Eligibility Criteria for Establishments

The scheme also lays out specific conditions for establishments:

• Establishments must be registered with the Employees’ Provident Fund Organization (EPFO).
• They must increase their workforce relative to their employee count as of September 2020:
  • A minimum of two new employees for establishments with 50 or fewer employees.
  • A minimum of five new employees for establishments with more than 50 employees.

Subsidy Structure and Benefits

The Government of India provides subsidies under the scheme to reduce the financial burden on employers and incentivize job creation. The subsidy structure is as follows:

1. Establishments with up to 1,000 Employees:
   • Subsidy Coverage: 24% of wages (12% employee contribution + 12% employer contribution).
   • The entire contribution is borne by the central government.
2. Establishments with More than 1,000 Employees:
   • Subsidy Coverage: 12% of wages (only the employee’s share of EPF contribution).
   • Employers bear the cost of their share.

These subsidies are directly credited to the UANs of eligible new employees, ensuring timely support.

Implementation and Process for Availing Benefits

The scheme leverages technology to streamline processes and ensure transparency. The Employees’ Provident Fund Organization (EPFO) has set up an electronic platform for employers to enroll and claim benefits under ABRY. The procedure involves:

1. Employer Registration:
   • Employers must update Form 5A and disclose their employee reference base as of September 2020 on the EPFO Unified Portal.
   • Establishments must register under ABRY and identify eligible new employees.
2. Employee Verification:
   • Employers must verify the previous EPF membership status of newly joined employees before registering them as beneficiaries under ABRY.
3. Electronic Challan cum Return (ECR) Filing:
   • Employers are required to file an ECR for all employees, including new ones, within 60 days of the wage month.
   • Employers must ensure accurate and timely submissions, as delayed ECR filings attract penalties under Section 7Q.
4. Other Instructions:
   • No deductions are allowed from the wages of new employees towards their share of EPF contributions.
   • Establishments engaged in providing manpower to principal employers cannot claim the subsidy if it is already claimed by the principal employer.

Responsibilities and Accountability

To prevent misuse and ensure the scheme’s efficacy, the government has mandated strict adherence to the rules:

• Employers and establishments must provide accurate details while claiming ABRY benefits.
• Any attempt to claim enhanced benefits through revised or corrected ECR filings is prohibited.
• Establishments found in violation of these terms may face penalties and liabilities.

Broader Impacts of ABRY

The Atmanirbhar Bharat Rozgar Yojana is designed to tackle the dual challenges of unemployment and economic stagnation brought about by the pandemic. Here’s how it benefits different stakeholders:

For Employers:

• Reduces the cost of hiring new employees through government-subsidized EPF contributions.
• Encourages workforce expansion, thereby fostering business growth.

For Employees:

• Provides financial security through EPF contributions without burdening employees with deductions from their wages.
• Facilitates formal employment for those who previously lacked social security benefits.

For the Economy:

• Encourages formalization of the workforce, ensuring more workers have access to structured benefits like EPF.
• Strengthens India’s economic recovery by increasing disposable income and boosting consumer demand.

Challenges and Safeguards

While the scheme offers significant advantages, it is essential to address potential challenges:

1. Awareness and Adoption:
   • Many small and medium enterprises (SMEs) may not be aware of the scheme or its benefits, limiting its reach.
   • Efforts are required to educate employers and employees about ABRY.
2. Monitoring and Compliance:
   • Ensuring compliance with the eligibility criteria and submission guidelines is critical to avoid misuse.
   • EPFO must implement robust mechanisms to verify claims and audit beneficiary records.
3. Sustainability:
   • The scheme is time-bound and primarily aimed at COVID-19 recovery. Long-term measures may be needed to sustain the momentum of job creation.

Conclusion

The Atmanirbhar Bharat Rozgar Yojana exemplifies the government’s commitment to addressing unemployment and supporting economic recovery. By incentivizing job creation and ensuring social security for workers, the scheme aligns with the broader vision of making India self-reliant. However, its success depends on effective implementation, awareness, and compliance. If leveraged optimally, ABRY can pave the way for a stronger, more resilient formal workforce and contribute significantly to India’s journey towards Atmanirbhar Bharat.

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