Scheme Guidelines for Implementation of Aatmanirbhar Bharat Rozgar Yojana (ABRY) – to incentivize creation of new employment opportunities in EPFO registered Establishments

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Law Update

Objective

  • Incentivize employer, registered with EPFO, for giving employment to new employee and re-employing persons from low wage bracket who lost their jobs during COVID-19 pandemic
  • Central Government will pay directly to Universal Account Number (UAN) of eligible employee maintained by EPFO depending on strength of the establishment.

Validity of scheme  

  • From 1st Oct, 2020 to 30th Jun, 2021
  • Benefit available for a period of 24 months from date of registration of new employee, not later than 30th Jun, 2023.

 Definitions for the Scheme

  • As per EPF &  MP Act, 1952 or any other scheme thereunder

              “New Employee” means any employee drawing wages less than Rs.15000 p.m.

  1. Who was not working in any establishment and did not have a UAN prior to 1.10. 2020 and joins after 1.10.2020 upto 30.6.2021
  2. Any EPF member, already allotted UAN, who made exit from employment from 01.03.2020 to 30.9.2020 from any establishment and who joins in any establishment on or after 01.10.2020 and upto 30.06.2021         

Reference Base of Employees (RBE)

  • No. of Employee shown in ECR filed (before commencement of this scheme) for the month of September 2020.
  • Where Sept.2020 ECR filed after due date but before 15.12.20,  reference base will as per Sept 2020 ECR or last ECR which was filed upto 11.11.2020 whichever is higher.
  • No. of employee shall be Zero for new establishment

Eligibility criteria for Establishments  

  • For already Registered establishments :
  1. shall have to employ minimum 2 new employees (if RBE is less than or equal to 50)
  2. and minimum 5 new employees ( RBE is more than 50)
  3. must continue to employ minimum no. of additional new employee  specified in Para     5(1)
  4. must continue to retain the no. new employee taken as RBE
  • For New Establishments (getting registered with EPFO between 01.10.2020 to 30.06.2021:
  1. RBE shall be treated as Zero.
  2. Such estb. Registers and maintains with less than 20 employees  during  the validity period of scheme, such estb. will not be allowed to exit from statutory scheme under EPF and MP Act, 1952 and beneficiaries shall not be allowed to make final withdrawals until expiry of 2 yrs. after the validity of this scheme.
  • Establishments working as contractors: shall not claim benefit of employers’ share under this scheme if the same is claimed by principal employer.
  • Single legal entity establishment: if using various code numbers obtained from EPFO for compliance, all employees in the establishment as a whole shall be included.

Eligibility criteria for Employees

  • New employee has to be registered for this Scheme during the period from 01.10.2020 to 30.06.2021 by employer of eligible establishment.
  • Should have Aadhaar seeded Universal Account Number.
  • Should continue to be in employment for a period of maximum 24 moths from date of registration as new employee.
  • New employee shall become ineligible if his/her monthly wage exceeds 14999/- at any point of time during this scheme period.
  • If new employee is already a registered beneficiary and employer is availing benefit of payment under PMRPY/PMPRPY 2016, no benefit available under this scheme.

 

Disclaimer :

The purpose of this blog is for education purpose and should not be construed as professional advice. Views expressed herein are the personal views of the author. Government or judicial authorities may or may not subscribe to the views expressed herein. Author of the blog is not liable for any implications arising out of actions taken based on the views expressed herein.

 

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