Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Scheme:
The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Plan Scheme has been designed to incentivise employers for generation of new employment, where Government of India will be paying the full employer's contribution towards EPF & EPS both w.e.f 01.04.2018 (earlier benefit was applicable for employer's contribution towards EPS only) for the new employment.
Objectives of the Scheme:
This scheme has a dual benefit, where, on the one hand, the employer is incentivised for increasing the employment base of workers in the establishment, and on the other hand, a large number of workers will find jobs in such establishments. A direct benefit is that these workers will have access to social security benefits of the organized sector.
Applicability of the Scheme:
All Establishment registered With Employee’s Provident Fund Organisation (EPFO) Can avail the benefits under this scheme subject to following conditions:
1. Establishment registered under EPFO should have a LIN (Labour Identification Number) allotted to them under Shram Suvidha Portal (https://shramsuvidha.gov.in/home).
2. The Eligible Employer must have added new employees to his establishment. The New Employee must have UAN (linked to Aadhar Card) after 1-4-16 and who has not worked in any EPFO Registered Establishment in the past.
3. To avail benefits under this scheme, the new employee must be earning Gross Wages (whole amount and not Basic+ DA and also before deducting TDS) up to Rs.15, 000/- per Month.
4. The Employer Earlier used to get benefit up to 8.33 %( EPS) of employer contribution from Government and 12% only in case textile (Apparel and Made-ups) sectors. BUT as per latest
amendment Government will bear the full employer Contribution i.e. 12% w.e.f 1-4-2018.
5. The scheme shall be in operation from April,2016 till March, 2019 so it means that between this period if any new employee is been added then they will be covered under this scheme if they have no UAN ( i.e. by way of Transfer).
6. To Summarize: If an employee is been employed between 1-4-16 to 31-3-19 then he shall be covered and his contribution shall be contributed for a period of 3 Years from his date of
Employment by the govt.
For E.g: If an Employee is employed on 1-1-19 then his employer contribution shall be contributed by government not up to 31-3-19 instead what is to be noted is that period of 3 years shall be calculated from his date of Employment i.e. up to 31-12-21.
Benefits of Employer under this scheme:
If a new employee is been recruited who has his gross wages/salary up to 15,000 then he employer shall get the following benefit:
This contribution by Government for 3 years shall be given if and only if such employee is been in employment under that employer for 3 years if not then up to employees period of stay it shall be contributed and the balance portion shall be taken by other employer where he had taken employment.
If an Employee joined on 1-4-18 under employer X and left the organization on 31-5-19, and got employed under employer Y then the PMRPY Benefit shall be contributed by Govt. for 3
years but such benefit shall be employed by both the employers as follows:
(a) For Employer X period of Benefit = 14 Months
(b) For Employer Y Period of Benefit = 22 Months
36 Months (3yrs)
Cases Under which PMRPY Benefit shall be Elapsed or not available:
1. Where the Employee’s Gross Salary is more than Rs.15,000 per month.
2. If that employee anywhere and at any time had an UAN Number.
3. If any ECR challan is been cancelled or a subsequent challan is been filed then the PMRPY Benefit shall not be available.
Warning: Because of doing the above the employer may become ineligible for benefits for some or all months, where he has already availed the benefits under this scheme.
So kindly file only one ECR and check if it been filed for all employee to whom they are supposed to pay to avoid this Warning (as stated above).
Points to be Noted While Filing ECR and also Addition of New Employees
under this Scheme:
(a) ECR statement should contain contribution details of all the employees i.e. for both non eligible employees and also for eligible employees under PMRPY Scheme details is to be
mentioned in ECR.
(b) Name Pertaining As per Aadhar and also as per name added in the employee’s base in EPFO Website Should be same.
(c) In order to take benefit of such New employee for that month, his name should be added in the PMRPY portal on or before 10th of the Subsequent month else his benefit shall be elapsed for that particular Month alone.
Note: While filing the ECR with both the employees the portal will itself compute the due amount after referring to the PMRPY Portal regarding employees added and will ask you to pay the balance portion.