Pradhan Mantri Rojgar Protsahan Yojana Last Updated : 21 Oct 2019

The Pradhan Mantri Rojgar Protsahan Yojana came into force in August 2016. The PMRPY is a scheme which was introduced with the aim of offering incentives to employers for providing employment.
More

The Pradhan Mantri Rojgar Protsahan Yojana or the PMRPY Scheme is a scheme which was introduced with the aim of offering incentives to employers for providing employment. In this scheme, the employers’ share of 8.33% towards the Employee Pension Scheme (EPS) is paid by the government for the first 3 years in case of new employees.

A proposal has also been raised to make this scheme applicable for people who are unemployed but are semi-skilled or unskilled. The same scheme has been implemented by the Ministry of Labour. It has been operating since August 2016. The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) was announced in the Budget of 2016-17. The primary purpose for the scheme has been the promotion of employment generation with Rs.1,000 crore having been made.

The main focus of this scheme is on the workers with a monthly earning of less than Rs.15,000. This helps to encourage the employers of small and medium enterprises, as well as, the employers of micro businesses to utilise the advantages of this scheme.

Purpose of the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Scheme:

The main objectives of the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) are as follows:

  • The primary purpose of the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) is to offer incentives to the employers who are generating jobs and are already registered with the Employees’ Provident Fund Organisation (EPFO).
  • The government also plans to pay 3.67% towards the Employees Provident Fund (EPF) for the textile industry through this scheme. However, there are certain eligibility criteria for the employers who create jobs for the new employees.
  • The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme helps to encourage the employers in job creation.
  • It helps a decent number of workers to find jobs.
  • One of the biggest benefits of the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme is that it extends the benefits of social securities towards the workers in these organised sectors.

Eligibility criteria for applying for the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Scheme:

The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme can be availed by all the institutions that are already registered with the Employees’ Provident Fund Organisation (EPFO). However, the establishments should also satisfy a few other conditions, such as:

  • The target workers under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) are the workers earning less than Rs.15,000 per month. In case a new employee earns more than Rs.15,000 per month, he/she will not qualify for the PMRPY scheme. A new employee is said to be one who has not been working in an EPFO-registered organisation regularly before 1 April 2016.
  • In addition to being registered under the EPFO, the business will also be required to acquire a Labour Identification Number (LIN) from the Shram Suvidha Portal. Under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme, the primary reference number for all official communications will be the Labour Identification Number or LIN.
  • The reference base for employees of organisations that are registered with the EPFO after 1 April 2016, will be taken as Zero/NL. This helps the employer to utilise the benefits offered by the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme for the new employees as per their eligibility.
  • The employers of the organisations are completely responsible for the information that they provide at the time of availing the scheme. If any of the information is found to be incorrect on a later date, the employer will be liable to pay penalties as per the recommendations of the Employees’ Provident Fund Scheme, 1952.
  • The 8.33% payment will be continued by the government towards the employers for the new employees who are eligible. This payment will be made for the first 3 years if the employees continue working under the same employer in the same employment. The payment of 8.33% will be made by the government once the remittance of 3.67% EPF contribution has been made by the employer.
  • In order to use the advantages offered by the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme, the new employees are to be added to the workers’ reference base by the employers who qualify for the scheme.
  • In order to avoid paying fines, the employer will be required to submit the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) online form by the 10th of the next month.

Duration of the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Scheme:

The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme is scheduled to be operational for a period of 3 years. However, the Government of India will continue the contribution towards the EPS at the rate of 8.33%.

What has to be done in order to Avail the Benefits under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Scheme?

The following criteria have to be fulfilled by an organisation in order to claim the benefits under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme:

  • The establishment should have a Labour Identification Number (LIN) which is valid along with a registration with EPFO under the EPF Act, 1952.
  • An organisational Permanent Account Number (PAN) should be held by the registered establishment.
  • A valid bank account should be held by the company or business. It should also have the details of the payment gateway which is used to make the payments to the establishment.
  • The establishment must have submitted the ECR by the month of March 2016.
  • The number of employees working in the establishment is required to increase on or after 1 April 2016.
  • If all the new employees meet the necessary requirements to be eligible, they can be covered in a new establishment that is registered after 1 April 2016.

Process for applying for the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Scheme:

The following process can be followed for the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme:

  • Employers are required to visit the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) website at https://pmrpy.gov.in and log in with their Labour Identification Number (LIN) or EPFO Registration ID.
  • The details of the organisation can be filled up by the employer as per the requirements. Some of the mandatory details to be provided are the Organisational PAN and the type of the sector or industry. This is done as per the division made by the National Industrial Classification Code NIC - 2008. The Ministry of Statistics and Programme implementation is responsible for maintaining this.
  • Since the scheme is applicable for new employees with a monthly earning of less than Rs.15,000, the employer is required to specify the job role and/or post of the employee. Their joining date and exit date (if applicable) should also be mentioned.
  • The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) form is required to be presented by the employer by the end of every month. Preferably, this form has to be submitted by the 10th of the subsequent month.
  • The employer will be in a position to lose the benefits that are offered under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme for a particular month if he/she fails to submit the required information online and on time.
  • The employer will be required to pay a 3.67% EPF contribution towards the new employees for the determination of the submission form.

News on PMRPY

  • Beneficiaries of PMRPY cross the 1 crore milestone

    The number of beneficiaries under the PMRPY (Pradhan Mantri Rojgar Protsahan Yojana) has crossed its 1 crore milestone. This was revealed by the government recently. The scheme endeavors to generate new employment by rewarding employers. Under this scheme, the government pays the 12% contribution of the employer towards the EPS (Employee Pension Scheme and EPF (Employee Provident Fund) for 3 years. The payment done on the employer’s behalf is only for employees who have joined the EPFO (Employee Provident Fund Organisation) on or after 1 April 2016 and earns a salary of up to Rs.15,000 per month.

    The Pradhan Mantri Rojgar Protsahan Yojana is the flagship programme launched by the Central government for the intent of generating employment. It was launched on 7 August 2016 and as on 14 January 2019, the number of beneficiaries under the scheme has managed to cross the 1 crore mark. The scheme is implemented by EPFO and the Ministry of Labour and Employment. The implementation of the scheme is entirely done online, is Aadhaar-based, and involves no human interface.

    18 January 2019

  • PMRPY benefits 98.38 lakh employees

    Santosh Kumar Gangwar, the Union Minister of State for Labour and Employment, has informed the Lok Sabha that 1.21 lakh establishments and 98.38 lakh employees have benefitted from the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY). With the objective of creating employment, the PMRPY was launched on 9 August 2016. The Indian Government pays the employer’s full contribution (12% towards EPS and EPF) for a span of three years from 1 April 2018, under this scheme. Employees who earn up to Rs.15,000 per month are targeted under this scheme.

    9 January 2019

  • Government to Pay Employers’ Contribution for EPF & EPS under PMRPY

    The Central Government has decided to pay the contribution of the employers towards the EPF and EPS accounts of the members. The decision has been taken in order to boost the job creation in the formal sector under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY). However, it is to be noted that the facility can be availed for only 3 years by the employers. This contribution will be offered for the remaining period in case the employee changes his job before the completion of 3 years.

    The contribution of the employee stands at 12% of the basic salary plus the dearness allowance towards his EPF account. However, the contribution is subject to a maximum of Rs.15,000. The employer’s contribution, on the other hand, consists of 12% of the basic salary plus dearness allowance. Out of the 12%, 3.67% goes towards the EPF and 8.33% goes towards the EPS account of the employee. Earlier it was decided that the government will pay only the EPS contribution of the employer. It was amended later and as per the fresh amendment dated 12 April 2018, the government has decided to pay off the entire contribution of the employer with effect from 1 April 2018.

    19 November 2018

  • 8.5 million Jobs created under the Government’s flagship Employment Generation Scheme

    The ruling government might have increased their chances of being re-elected to power as their flagship employment generation scheme, the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) has given jobs to as many as 8.5 million people.

    The government has a target of creating job opportunities for as many as 10 million people by the end of March 2019 under the scheme. This move will also include the government paying the employer’s share of the pension contribution towards EPFO as an incentive. Going by this pace and plan, the Ministry of Labour is hoping that the government will be able to achieve the target well in advance. The officials are of the opinion that the data provided by the Employees’ Provident Fund Organisation (EPFO) will help boost the process and provide better credentials on jobs. A senior official from the Ministry of Labour said that the enrolment forms under the scheme provide for self-declaration of jobs by employers. The total outgo from the government for attaining the benchmark of providing 8.5 million jobs stands at about Rs.2,400 crore. Around 4.7 million jobs out of the 8.5 million jobs were created for people below 25 up to August this year. Under the PMRPY, the government will be paying the employer’s contribution for EPF and EPS in full with effect from 1 April 2018. This will be continued for a period of 3 years for all the newly generated jobs.

    14 November 2018

  • PM Modi’s job promotion scheme now covers 1 lakh establishments and 85 lakh beneficiaries

    The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), the flagship job promotion scheme which was launched by PM Narendra Modi in August 2016 has finally gained momentum. By the end of July 2017, only about 6,600 establishments were enrolled under the scheme. The numbers have sky-rocketed dramatically since then and now the count has gone up to as much as 1 lakh.

    The number of beneficiaries has also proportionally shot up from 3 lakh to about 85 lakh by the end of March 2018. Under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), the government bears the entire part of the contribution of the employers (12% of the basic pay) towards the Employees’ Provident Fund (EPF). This is applicable for employees earning less than Rs.15,000 per month during the first 3 years of their employment. The scheme has gained a considerable amount of momentum after the Budget 2018-19. In the Budget, the government’s EPF contribution was raised to 12% from 8.33% and the scheme was extended to all the sectors.

    13 November 2018

  • Nearly 1 crore members added to EPFO in past 2 years

    In past 2 years, more than 1 crore subscribers have been included to the EPFO as per the Labour Minister Santosh Kumar Gangwar. During the 66th Foundation Day Celebration of EPFO on Thursday, he said that the government is more concerned about the 40 crore people who are working in the unorganised sector. According to him more than 1 crore of new employees are added to the EPFO to help them get the benefits of the Employees' State Insurance Corporation (ESIC) schemes. He also added that the good results of the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) have encouraged employers to hire more people. Under this scheme, the government pays employer's full contribution to EPF and EPS from 1 April 2018 for new employments done for the first 3 years.

    12 November 2018

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.