Finance

Published: May 10, 2023
Updated: May 10, 2023

Empowering Employment: Exploring the Atmanirbhar Bharat Rojgar Yojana Scheme in EPFO

Introduction to the Atmanirbhar Bharat Rojgar Yojana Scheme

The Atmanirbhar Bharat Rojgar Yojana (ABRY) scheme, introduced by the Indian government, aims to boost employment opportunities and provide financial relief to both employers and employees. Implemented through the Employees' Provident Fund Organization (EPFO), this scheme offers several benefits that contribute to the growth and stability of the workforce.

Encouraging Employment Generation

The ABRY scheme focuses on encouraging employers to hire more employees by providing a subsidy for new hires. Under this scheme, eligible establishments are granted a 12% contribution for both the employer and employee, including EPF and EPS components, for a period of two years. This incentivizes employers to expand their workforce and supports job creation initiatives.

Financial Relief for Employers:

The ABRY scheme alleviates the financial burden on employers by reducing the costs associated with hiring new employees. The 12% subsidy on EPF and EPS contributions helps companies reduce their expenditure, making it more financially viable for them to recruit additional workers. This scheme particularly benefits small and medium-sized enterprises (SMEs) that may face resource constraints.

Boosting Job Security and Social Security for Employees

For employees, the ABRY scheme enhances job security and social security provisions. By incentivizing employers to hire more workers, it creates additional employment opportunities. The scheme ensures that new employees receive the same benefits as existing employees, such as EPF and EPS contributions, thus promoting fairness and equality in the workforce.

Facilitating Economic Growth and Self-Reliance

The ABRY scheme aligns with the vision of Atmanirbhar Bharat (Self-Reliant India) by fostering economic growth. By promoting job creation, the scheme fuels economic activity, leading to increased consumer spending and investment. The financial stability provided by EPF and EPS contributions also enhances employees' confidence, enabling them to contribute positively to the economy.

The Atmanirbhar Bharat Rojgar Yojana Scheme in EPFO plays a pivotal role in promoting employment generation and strengthening the workforce. By offering subsidies to employers and ensuring social security benefits for employees, the scheme contributes to economic growth and self-reliance. It encourages employers to hire new workers, reduces financial burdens, and provides job security to employees. As India continues its journey towards self- reliance, the ABRY scheme serves as a catalyst in creating a vibrant and inclusive job market. Employers and employees alike can leverage the benefits of this scheme to build a prosperous and resilient future for all.