1. What is the Pradhan Mantri Rojgar Protsahan Yojana Scheme? The Pradhan Mantri Rojgar Protsahan Yojana, or PMRPY Scheme is aimed at incentivising employers to generate employment, where the Government pays the employers’ Employee Pension Scheme share of 8.33 percent, for new employees for the first three years of their job. There is also a proposal to make this applicable for those who are unemployed but are semi-skilled and unskilled as well. The Ministry of Labour has implemented the same scheme and has been in operation since August 2016. The PMRPY scheme was announced during the 2016-17 Budget with the primary purpose of promoting the generation of employment with INR 1000 crores having been made. The scheme targets workers who earn wages of less than INR 15000 on a monthly basis. It encourages employers of Small and Medium Enterprises and Micro Businesses to avail the benefits of this project.
2. The Purpose of the PMRPY Scheme The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) aims to incentivise those employers who are registered with the Employees’ Provident Fund Organization (EPFO) in order to create jobs. Apart from paying the 8.33 percent towards the contribution of employees EPS, for the textile industry, the government also intends to pay 3.67 percent towards the Employees Provident Fund for the eligible employers of new employees. The scheme serves two purposes; one, it encourages job creation by the employers by incentivising them, and on the other hand, gets a large number of workers find jobs. One major benefit to these workers is the access to social security benefits in these organized sectors.
3. What is the Eligibility Criteria for Applying for the Pradhan Mantri Rojgar Protsahan Yojana? The scheme is available for all the establishments that are registered with the Employees’ Provident Fund Organization and satisfy the following conditions:
1. The target of the PMRPY are workers earning wages less than INR 15000 per month and hence, the new employees who earn more than INR 15000 monthly, do not qualify for this scheme. A new employee would be one who has not been working regularly in an EPFO registered organization prior to April 1, 2016. This is determined by the allocation of a new Aadhaar linked Universal Account Number on or after April 1, 2016. If the employee does not have a new UAN, the employee can facilitate this through the Employee Provident Fund Organization portal.
2. The business must be registered with the EPFO and must have a Labour Identification Number (LIN) that one can acquire under the Shram Suvidha Portal. Under the PMPRY scheme, the Labour Identification Number will serve as the primary reference number for all official communication.
3. The employers and establishments that apply for this scheme are held fully responsible for the information that they furnish. If at any time any of it is found to be incorrect, it will be assumed that the EPS payment/EPF payment for the textile industry, was not made for the employees. This will make the employer liable to penalties under the rules of The Employees’ Provident Fund Scheme, 1952. Do you have any questions about tax or finance you need help with?
4. The employers who are eligible for the scheme should add the new employees to the workers’ reference base to make use of the benefits under this scheme. However, the determination of the workers reference base will be done by the number of employees against whom the employers makes the 12 percent deposit (ie. 3.67 percent EPF and 8.33 percent EPS), as on March 31, 2016. This is verified from the March 2016 monthly ECR.
5. Establishments that get registered with EPFO after April 1, 2016, will have their reference base for employees be taken as Zero/NL. This way the employer will be able to access the PMRPY benefits for new eligible employees.
6. The Government will continue to pay the 8.33 percent to the employers for the eligible new employees for the first three years if they continued with the same employer in the same employment. The 8.33 percent will be paid by the Government post the remittance of 3.67 percent EPF contribution by the employer. The employer is to submit the PMRPY online form before the 10th of the following month to avoid any fine.
4. What is the duration of the PMRPY scheme? The Pradhan Mantri Rojgar Protsahan Yojana is scheduled to be in operation for a span of three years. The Government of India will however continue to contribute towards the EPS at 8.33 percent, which the employer is to make for the next three years. Therefore, all the eligible new employees will be covered under the scheme till the year 2019-2010.
5. How can I Avail the Benefits Under the PMRPY Scheme? Following are the criteria for establishments to be able to claim the benefits of this scheme: a. The establishment must be registered under the EPF Act 1952 with EPFO and a valid Labour Identification Number (LIN); b. The registered establishment must have an organizational PAN; c. The Company or business must have a valid bank account and have the details of the gateway through which the payments are made to the establishment.; d. The ECR must be submitted by the establishment by the month of March 2016.; e. The number of employees in the establishment must increase on or after April 1, 2016.; f. All the new employees can be covered if they meet the necessary conditions in a new establishment that is registered after April 1, 2016.
6. What is the Process for the PMRPY Scheme?
a. Employers can visit the PMRYP site and log in with their LIN/EPFO registration ID.
b. The employers can then fill in the organizational details as mandated. This includes the Organizational PAN, the nature of the industry or sector as per the classification by the National Industrial Classification Code NIC-2008, which is maintained by the Ministry of Statistics and Programme implementation.
c. The scheme is to cover employment of new workers earning wages that are less than INR 15000, per month. There must be specific mention of the job role and post for the new employment along with the date the employee would join and the date of exit, if it is applicable.
d. The PMRPY form has to be submitted by the end of each month by the eligible employers at the earliest, preferably by the 10th of the following month.
e. Failure to submit the required information online on the PMRPY form by the designated time of 10th of the following month, the employer will stand to lose his benefits under the PMRPY Scheme for that particular month.
f. The employer will have to pay 3.67 percent EPF contribution towards the new employees for the submission form to be determined.
All establishments registered with Employees’ Provident Fund Organisation (EPFO) can apply for availing benefits under the scheme subject to the following conditions:
(a)Establishments registered with the Employees’ Provident Fund Organisation (EPFO) should also have a Labour Identification Number (LIN) allotted to them under the Shram Suvidha Portal (https://shramsuvidha.gov.in). The LIN will be the primary reference number for all communication to be made under the PMRPY Scheme.
(b)The eligible employer must have added new employees to the reference base of workers 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. For example, an establishment, say M/s ABC Ltd. had filed an ECR for the employers’ contribution for 45 employees/workers in March, 2016. In the month of April, 2016, the establishment has added, say, 15 new workers bringing the total of employees to 60, the employer will be eligible to apply for the PMRPY scheme benefits for these 15 new employees. The employer will not be eligible to avail of PMRPY benefits if there is no new employment vis-à-vis the reference base in any subsequent month. The new employee, as mentioned in para 5(e) above, is one that had not worked in any EPFO registered establishment or had a Universal Account Number, in the past, i.e. prior to 01st April, 2016.
(c)For new establishment coming into existence/getting registered with EPFO after 01st April, 2016, the reference base will be taken as Zero/NIL employees. Thus, the employer can avail of PMRPY benefits for all new eligible employees.
(d)The PMRPY scheme is targeted for employees earning wages less than Rs 15,000/- per month. Thus, new employees earning wages more than Rs 15,000/- per month will not be eligible. A new employee is one who has not been working in an EPFO registered establishment on a regular basis prior to 01st April, 2016 and will be determined by the allocation of a new Aadhaar seeded Universal Account Number (UAN) on or after 01.04.2016. In case the new employee does not have a new UAN, the employer will facilitate this through the EPFO portal.
(e)The employers will continue to get the 8.33% and 3.67% EPF contribution paid by the Government for these eligible new employees for the next 3 years, provided they continue in employment by the same employer.
(f)Employers/Establishments applying for the Scheme shall be fully responsible for the information uploaded. If at any time, it is found that the information submitted is incorrect or false, it will be assumed that the EPS payment(and EPF payment for textile sector) has not been made for these employees. The employer will then be liable for dues and penalties as already specified under the relevant provisions of The Employees’ Provident Fund Scheme, 1952.
The employers are also eligible to get the 3.67% EPF contribution paid by the Government as mentioned in the PMRPY on-line form. This benefit can be availed of by the textile (apparel) sector establishments dealing with the Manufacture of wearing apparel, in particular NIC Codes 1410 and 1430. The Government, in this case, will also pay the EPF contribution of 3.67% in addition to paying the EPS contribution of 8.33%.
The payment of 8.33% EPS and 3.67% EPF by the Government will be made after the employer has credited the 12% EPF contribution of the employees with EPFO.
The industry sector/sub-sectors covered by this component are the following NIC Codes:
(1) NIC 1410: Manufacture of wearing apparel, except fur apparel
- NIC 14101: Manufacture of all types of textile garments and clothing accessories
- NIC 14102: Manufacture of rain coats of waterproof textile fabrics or plastic sheetings
- NIC 14105: Custom tailoring
- NIC 14109: Manufacture of wearing apparel not elsewhere classified
(2) NIC 1430: Manufacture of knitted and crocheted apparel
- NIC 14301: Manufacture of knitted or crocheted wearing apparel and other made-up articles directly into shape (pullovers, cardigans, jerseys, waistcoats and similar articles)
- NIC 14309: Manufacture of other knitted and crocheted apparel including hosiery
How to register new employee under PMRPY Scheme?
- EPF registered Employers can visit the PMRYP site and log in with their LIN/EPFO registration ID.
- Register employee with UAN No
- There must be specific mention of the job role and post for the new employment along with the date the employee would join and the date of exit, if it is applicable.
- The scheme is to cover employment of new workers earning wages that are less than INR 15000, per month.
- The PMRPY form has to be submitted by the end of each month by the eligible employers at the earliest, preferably by the 10th of the following month.
- Failure to submit by 10th of the following month, the employer will stand to lose his benefits under the PMRPY Scheme for that particular month.
- Upload the information as per Aadhar only.
- Validate aadhar information and approved by DSC of the employer.
- PMRPY amount auto populated on ECR payment acknowledgment.