Atmanirbhar Bharat Rozgar Yojana: Empowering Employment and Economic Recovery

The Atmanirbhar Bharat Rozgar Yojana (ABRY) is an ambitious initiative by the Government of India aimed at boosting employment opportunities in the formal sector. Launched under the Atmanirbhar Bharat Package 3.0, the scheme incentivizes the creation of new jobs and supports businesses in their recovery phase during the COVID-19 pandemic. This initiative is a step towards revitalizing the economy by addressing unemployment and providing financial aid to establishments for hiring new employees. The scheme, operational from 2020 to 2023, is a cornerstone in India’s journey towards self-reliance, or “Atmanirbharta.”

Objectives and Vision

The primary objective of ABRY is to stimulate employment generation during the post-COVID economic recovery phase. It seeks to:

1. Encourage job creation in establishments registered under the Employees’ Provident Fund Organisation (EPFO).
2. Support new employees by providing them with financial benefits through their EPFO accounts.
3. Enable employers to expand their workforce by reducing their financial burden through government subsidies.

By bridging the gap between job seekers and employers, the scheme aims to reduce unemployment while ensuring social security for workers in the formal sector.

Operational Period

The scheme is active for:

1. Registration of eligible employers and employees: From October 1, 2020, to March 31, 2022.
2. Payment of incentives: For a period of 24 wage months from the date of registration of new employees under the scheme.

Beneficiaries of ABRY

The scheme targets two major categories of beneficiaries:

1. New Employees:

• Employees earning a monthly wage of less than ₹15,000 who meet the following conditions:
  • Were not employed in any EPFO-registered establishment prior to October 1, 2020.
  • Did not possess a Universal Account Number (UAN) before this date.
  • Joined an EPFO-registered establishment between October 1, 2020, and March 31, 2022, and received an Aadhaar-validated UAN.

2. Existing EPF Members Who Rejoined Employment:

• Any EPF member who exited employment during the COVID-19 pandemic period (from March 1, 2020, to September 30, 2020) and rejoined an establishment registered under EPFO between October 1, 2020, and March 31, 2022.

For both categories, the government provides financial incentives directly credited to their UANs.

Eligibility Criteria for Establishments

Establishments registered under the EPFO are eligible for the scheme if they meet the following criteria:

1. Establishments must add new employees in comparison to their employee base as of September 2020:
   • Minimum two new employees if the reference base is 50 employees or less.
   • Minimum five new employees if the reference base is more than 50 employees.
2. The establishments must ensure adherence to the EPF rules and maintain transparency in their employee records.

Benefits Offered

The Government of India provides a subsidy for two years in respect of new employees engaged between October 1, 2020, and June 30, 2021. The subsidy varies depending on the size of the establishment:

For establishments with up to 1,000 employees:

• The government covers 24% of wages (12% employee contribution + 12% employer contribution).

For establishments with more than 1,000 employees:

• The government covers only the 12% employee contribution of EPF wages.

The subsidy is credited upfront into the Aadhaar-seeded UAN of eligible employees.

Procedure for Availing Benefits

The implementation of ABRY is facilitated by the EPFO through its unified portal. Employers must follow a structured process to claim benefits under the scheme:

1. Update Form 5A:
   Employers are required to disclose their reference base of employees using the dedicated link on the EPFO Employer’s Portal.
2. Verify Employee Details:
   Employers must obtain and verify a declaration regarding the previous EPF membership status of employees joining their establishment.
3. Electronic Challan-Cum-Return (ECR):
   • Employers must file an ECR for all employees, including new employees, for each wage month within 60 days of the close of that wage month.
   • Employers are responsible for ensuring timely submission, as any delay may lead to interest liability under Section 7Q of the EPF Act.
4. No Deduction from Wages:
   • Employers are prohibited from deducting the employee’s share of EPF contributions from the wages of new employees.
   • Wages must be disbursed in full without such deductions.
5. Contractors:
   • Establishments functioning as contractors for manpower services cannot claim the benefit of the employer’s share if the same benefit is claimed or received by the principal employer.
6. Accuracy of Information:
   Employers and establishments are responsible for ensuring the accuracy of all data submitted for claiming ABRY benefits. Any errors or misrepresentations can lead to penalties and withdrawal of benefits.

Validity and Timelines

The scheme operates within a defined timeline:

• Registration of Employers and Employees:
  • From October 1, 2020, to March 31, 2022.
• Incentive Period:
  • Subsidies are provided for a period of 24 wage months from the date of registration of new employees.

This structured timeline ensures that benefits are effectively targeted at establishments and employees during the recovery phase.

Expected Impact of ABRY

Boost to Employment:

The scheme encourages employers to expand their workforce by offering financial incentives, thereby increasing formal employment opportunities.

Support to Pandemic-Affected Workers:

By targeting workers who lost jobs during the pandemic and facilitating their re-employment, ABRY plays a crucial role in mitigating the economic impact of COVID-19.

Strengthening Social Security:

The scheme strengthens social security for workers by ensuring their inclusion in the EPF system, providing them with financial stability and long-term benefits.

Challenges and Monitoring

While the scheme provides significant benefits, its success depends on effective implementation and monitoring:

1. Ensuring Compliance:
   Employers must comply with all guidelines to prevent misuse of subsidies.
2. Timely Filing of Returns:
   Delays in filing ECRs or incorrect submissions could hinder the flow of benefits to employees.
3. Verification of Records:
   Stringent verification processes are essential to ensure that only eligible employees and establishments receive benefits.

The EPFO, as the nodal agency, has deployed an electronic facility to streamline operations and minimize errors.

Conclusion

The Atmanirbhar Bharat Rozgar Yojana is a transformative initiative that addresses unemployment and economic recovery in the aftermath of the COVID-19 pandemic. By providing financial incentives to employers and social security benefits to workers, the scheme not only promotes job creation but also strengthens India’s formal employment sector.

The success of ABRY lies in its effective implementation, transparency, and the collaboration of all stakeholders. As the nation progresses towards self-reliance, initiatives like ABRY act as stepping stones to a robust and inclusive economic recovery.