Pradhan Mantri Rojgar Protsahan Yojana {प्रधानमंत्री रोजगार प्रोत्साहन योजना}

The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) is a scheme introduced by the Ministry of Labour and Employment in the 2016 union budget and started operating from August, 2016. The government’s aim through this scheme is to incentivise employers to generate employment, to pay employer’s full Employee Pension Scheme (EPS) for new employees for the next three years of employment. This scheme was also proposed to be made applicable to the unemployed people who are semi-skilled or unskilled. To know more about Pradhan Mantri Rojgar Protsahan Yojana and for latest updates, read this article till the end.

Objectives 

The important two objectives of PMRPY scheme are mentioned below:

• The employers will be incentivised for creating more job opportunities in the workplace.
• People will be employed in these workplaces and they will also be provided social security benefits.

Duration 

The PMRPY scheme is valid for 3 years. The government will pay the full amount of the Employee Pension Scheme on behalf of the employer for next 3 years. This scheme is only applied to the new employees in the workplace till 2019-2020.

How to Avail the Benefits?

The benefits of the PMRPY scheme can be availed by the employers in the following ways mentioned below:

• The business has to be registered with the Employee Provident Fund Organisation (EPFO) under the Employee Provident Fund (EPF) Act, 1952.
• The business must possess a Labour Identification Number (LIN).
• A PAN Card on the name of the business is required.
• The business must have its own bank account.
• The business must submit the ECR by the month of March, 2016.
• The business must increase the number of employees on or after 1st April, 2016.
• If the new business is registered after 1st April, 2016 then all the new employees will be covered under the PMRPY scheme if they fulfil the necessary conditions.

Eligibility Criteria for Employers

The employers need to fulfill the following conditions mentioned below for being eligible for the PMRPY scheme:

• The business has to be registered with the Employee Provident Fund Organisation (EPFO) and must also possess a Labour Identification Number (LIN) issued under the Shram Suvidha Portal i.e., shramsuvidha.gov.in. The LIN will act as the primary reference number for making communication under the scheme.
• Employers will be responsible for the information they upload while applying for the scheme. If it is found that the information is incorrect or inaccurate, it will be assumed that the EPS payment has not been made for these employees. The employer will then be liable for dues and penalties specified under the provisions of The Employees’ Provident Fund Act, 1952.
• Businesses that will register on or after 1st April, 2016 with EPFO, there reference base will be considered nil employees. Therefore, the employer can avail the benefit of this scheme for all the new employees.
• The employer must add new employees to the reference base of employees in order to avail benefits under the Scheme from August, 2016 onwards. The reference base of workers will be determined by the number of employees against whom the employer has deposited the 12% (3.67% EPF + 8.33% EPS) with EPFO as on 31st March, 2016, as ascertained/verified from the monthly ECR for March, 2016.The new employee had not worked in any EPFO registered business or had a Universal Account Number.
• The PMRPY scheme is for employees earning wages less than Rs 15,000 per month. If the new employees earning wages more than Rs 15,000 per month he/she won’t be eligible. A new employee must not work in an EPFO registered business, prior to 01st April, 2016 and must hold an Aadhaar seeded Universal Account Number (UAN) on or after 1st April, 2016. In case the new employee does not have a new UAN, the employer will facilitate it through EPFO portal.
• Government will continue to pay 8.33% contribution on the EPS for eligible new employees for the next 3 years, on behalf of the employers. The employer has to contribute 3.67% on EPS for the new employees each month. To avoid any penalty on EPS contribution, the employer is advised to submit the PMRPY online form at the earliest.

Eligibility Criteria for the Employees

The new employees have to fulfil the following conditions to be covered under the PMRPY scheme:

• The new employee must join the business on or after 1st April, 2016 and must not be an employee of any business registered with EPFO earlier.
• The new employees must possess a UAN linked with their aadhar card. If the new employee doesn’t possess UAN then they have to first register themselves with the EPFO in online by entering their mobile number and other contact details.
• The new employees will get ₹15,000 or less as their monthly salary.
• The government will contribute to the EPS for the new employee for 3 years.
• If a business was eligible for the PMRPY scheme but the employee base decreased then the business won’t be eligible for the scheme anymore.
• Employers will upload the ECR file of the new employee as per ECR 2.0. Along with the ECR there will be an online certificate from the employer also, claiming that the Submission was claimed only in respect of the new employees.

Process

The employers must follow the following steps mentioned below:

1. First, visit the official website of PMRPY scheme i.e., pmrpy.gov.in.
   

2. At the homepage there will be a ‘login’ option on the top, click on it.
   

3. Then, the login page will open where the employers LIN/PF code and password will be asked.
   

4. After filing those details, click on the ‘sign in’ button.
   

5. Once, logged in the employer can start filling the organisation’s details.

6. They have to enter the business’s PAN, the nature of the sector as per the classification by the National Industrial Classification Code NIC-2008.

Frequently Asked Questions

Q. What is the full form of PMRPY?

PMRPY stands for Pradhan Mantri Rojgar Protsahan Yojana.

Q. What is Pradhan Mantri Rojgar Protsahan Yojana?

In this scheme the Government of India contributes 8.33% on the EPS for the new employees for the next 3 years on the behalf of the employers.

Q. When was Pradhan Mantri Rojgar Protsahan Yojana launched?

The scheme started operating from August, 2016.

Q. Who introduced Pradhan Mantri Rojgar Protsahan Yojana?

The Ministry of Labour And Employment introduced this scheme during the 2016 Union Budget.

Q. How much contribution will be paid by the Government of India?

The government will contribute 8.33% on the EPS.

Q. What does EPS stand for?

EPS stands for Employee Pension Scheme.

Q. What does EPFO stand for?

EPFO stands for Employee Provident Fund Organisation.

Q. What is the official website of Pradhan Mantri Rojgar Protsahan Yojana?

The official website is pmrpy.gov.in.

Q. Can I apply for the PMRPY scheme offline?

The employer has to apply for the scheme online only.

Q. With which agency the employer has to register its business?

The employers have to register their business with the EPFO for availing the benefits of the scheme.

Q. If the new employee earns more than ₹15,000 as monthly salary. Will he/she be eligible for the scheme?

No, the new employee must earn less than ₹15,000.

Q. What does LIN stand for?

LIN stands for Labour Identification Number.

Q. What does UAN stand for?

UAN stands for Universal Account Number.

Q. From where can I get the UAN?

The employer can facilitate the UAN for the new employee from the EPFO portal.

Q. For how much time the government will contribute in the EPS?

The government will contribute to the EPS for 3 years.

Q. Within how much time the employer has to register the business for availing the benefits of the scheme?

The employer must register the business on or after 1st April, 2016 for availing the benefits under this scheme.

Q. From where the LIN is issued?

Shram Suvidha Portal issued by the LIN.