What is Pradhan Mantri Rojgar Protsahan Yojana?
Unemployment was a major concern for the Indian youth since 1991. It occurred because of the numerous reasons like
- Unprofitable and
- Informal sector jobs.
Between 2004-2005, there were 14 millions jobs added to the economy. These jobs were in huge amounts in the informal sector like-
- Retail trade, etc.
The World Bank shared a visual representation of increase and decrease in the unemployment rate.
- In 2016, there was a decline of 0.1% in the unemployment rate.
- In 2017 & 2018 there was 0.08% & 0.06% decline in the unemployment rate.
- But in 2019 the COVID-19 spread and increased the unemployment rate to 1.84% that is at 7.11%.
The Government of India is taking important actions to govern the unemployment rate.
To overcome the unemployment issue, the GOI launched a scheme in August 2016.
“Pradhan Mantri Rojgar Protsahan Yojana”.
This scheme is a central Government scheme. It aims to incentivize employers to generate employment. In this scheme, the Government pays the share of 8.33% at EMP Scheme. This share is for the first three years of the employee’s job.
In the 2016-17 budget, the scheme stated that it will target the employees who earn less than 15,000 per month. The scheme will help the employees of micro business and SMEs to have benefits of the PMRPY.
Recently, the CMIE shared data on unemployment. It stated that in India the all over unemployment rate was 8.10% in February 2022. Further the ratio came down to 7.5% in March. It was with the 8.5% unemployment rate in urban areas. Whereas, there was a 7.1 % unemployment rate in rural areas.
Note: CMIE refers to the Central for Monitoring Indian Economy.
What are the various objectives of PMRPY?
The objectives of PMRPY are as follows:
- The main objective of the PMRPY is to provide incentives to the employers who generate jobs. These employers must register him/her self with the EPFO.
- The Government will contribute 3.67% share via this scheme. It will be towards the EPF for the textile industry.
- To encourage the employers for creating jobs.
- Assist an ample number of workers to find jobs.
- To extend the advantage of social securities in regard to the workers.
- Yet, there are some eligible criteria for employees who will create jobs for new employees.
NOTE: EPFO stands for Employees Provident Fund Organization.
NOTE: EPF stands for Employees Provident Fund.
What is the eligible criteria to apply for PMRPY?
This scheme is available at all the institutions that are already in registration with EPFO.
There are some eligible criteria. They are as follows-
- The targeted workers should earn less than INR 15,000 per month.
- If the target worker earns more than INR 15,000 then he/she will not be eligible for the PMRPY.
- The business registered under EPFO should have a LIN. It should be taken from the Shram Suvidha Portal.
- Beneath this scheme the primary mode of official contact will be the LIN.
NOTE: LIN stands for Labor Identification Number. This number is issued to the employers for easy regulation of business. It brings responsibility and transparency in inspection of labor.
- The employees’ institution will have a reference base. This base will be taken as NL/ Zero if registered after 1 April 2016. Moreover, this base will help the employer to take scheme advantage.
- The employers of the institution are responsible for providing all information to new employees. This will be at the time of availing the scheme. If the employers circulate incorrect information, then they will be chargeable to pay penalties. These penalties will be as per the EPF scheme, 1952.
- The Government will continue its 8.33% share. It will be in regard to new employees of employers. This share will be continued for the first three years of employment. In addition, this share will be paid by the Govt. Once the employer made a 3.67% EPF payment contribution.
- The eligible new employees will be added by the employer. It will be beneath the workers’ reference base.
- The employer will submit the online form of PMRPY. It will be by the 10th of next month. This will aid employers to avoid paying fines.
What is the method to apply for the PMRPY scheme?
The application process to apply for the PMRY scheme is as follows-
- Visit the official PMRPY website.
- Login with EPFO registration ID or LIN.
- Fill up the institution details.
- Fill up some mandatory details. These details can be
- PAN of the Organization &
- Industry or sector type.
- Submit a job post or role of the employee.
- Mention exit and joining date (if applicable).
- Finally, pay a 3.67% EPF contribution in regard to new employees.
What are the benefits of the PMRPY?
The PMRPY serves two main benefits. They are-
- Encourage employees with incentives for creating jobs.
- Aid large numbers of workers to find relevant jobs.
The main benefit of the scheme is to provide access to social security benefits for the workforce. Moreover, these benefits will be in the organized sector.
The PMRPY scheme helps unemployed, semi-skilled & unskilled Indian citizens to get employment. In addition, the Government provides EPS contributions for every new employee. This scheme is for workers who earn less Rs. 15000 per month.