The Pradhan Mantri Rojgar Protsahan Yojana, or PMRPY, is a new scheme put in place by the Indian Government aimed at increasing employment. PMRPY was announced during the 2016-17 Budget. Through this scheme, the Government pays the employers’ share of the Employee Pension Scheme, which stands at 8.33%, for the first 3 years of their employment.
PMRPY mainly serves two purposes. It encourages employers to recruit more people. It also gives low-wage workers access to social security benefits offered in various organised sectors. An individual can benefit from this scheme if he or she is employed at an organisation registered to the Employees’ Provident Fund Organization. They can go for UAN number activation with their Aadhaar.
About the PMRPY Scheme
PMRPY is aimed at employers who are listed under the EPFO. It encourages the employers of small and medium enterprises and micro businesses by reducing their financial burden of paying a share of the employee pension scheme.
It is especially beneficial for workers who earn a monthly wage of less than Rs. 15,000. PMRPY also brings extra benefits for workers in the textile sectors. The Indian Government will bear 8.33% of the Employee Pension Scheme and 3.67% of Employee Provident Fund contribution. It is also applicable for semi-skilled and unskilled workers. The Ministry of Labour has implemented the scheme since August 2016.
Eligibility Criteria for Applying for the PMRPY
Any establishment registered with EPFO can apply for benefits under the scheme. They should have a Labour Identification Number (LIN) which will act as a reference number for communications made under the PMRPY scheme. An organisation must have a valid business PAN and bank account which will be used to process payments. They also have to submit their ECR (Electronic Challan cum Returns) for March 2016. They should also provide the PMRPY online form before the 10th of the following month to avoid penalty charges.
Any employee earning less than Rs. 15,000 every month will be eligible for the benefits. He or she must have an Aadhaar linked Universal Account Number (UAN) on or after 1st April 2016. In case they don’t have a new UAN, the employer will facilitate the benefits through the Employee Provident Fund online portal. An employee should proceed with their UAN activation to participate in this scheme afterwards. Also, their date of joining in that establishment should be on or after 01.04.2016.
Availing Benefits under PMRPY Scheme
To get assistance from the PMRPY scheme, an employee first has to complete their UAN activation process. Then, he or she has to register in the UAN member portal with the UAN number and PF member ID.
You can activate the UAN and use the portal for this scheme to avail additional benefits such as viewing your PF account details & statements and getting credit confirmation notifications, online or via SMS.
Duration of the PMRPY Scheme
The PMRPY will cover 8.33% employee pension scheme EPS expenses for the first 3 years of employment. Once an employee joins the organisation and activates the UAN, the employer will list him or her under their LIN scheme and initiate a request for the Protsahan Yojana.
The Purpose to PMRPY
The central motive of this scheme is to act as a catalyst for employers in the small and medium business sectors to generate employment in the organised sector. The scheme aims to provide with the financial backing as well as a supervisory confidence to both the employer and employee.
It also provides special emphasis on women working in yet to be completely organised small-scale industry sectors such as textiles with additional benefits and incentives.
From a larger perspective, a small or medium scale business can directly facilitate from this scheme. Multiple such schemes are in place now to provide these businesses with a vital economic backbone to help foster overall business growth throughout the small and medium business sector.
With schemes such as the Pradhan Mantri Rojgar Protsahan Yojana and top financial institutions, businesses now have multiple forms of direct and indirect financial assistance and backing.
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