Pradhan Mantri Rojgar Protsahan Yojana

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.

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 Pradhan Mantri Rojgar Protsahan Yojana

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 for applying for PMRPY

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 Employee's 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

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.

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