Question

The Pradhan Mantri Rozgar Protsahan Yojana (PMRPY) in India focuses on?

• A. Providing financial assistance to start-ups
• B. Promoting employment generation by incentivizing employers
• C. Regulating working hours in industries
• D. Achieving cleanliness and sanitation across the country

Answer 1

Answer:

B. Promoting employment generation by incentivizing employers

Overview of Pradhan Mantri Rozgar Protsahan Yojana (PMRPY)

• Launch Date: The scheme was launched on August 9, 2016.
• Nodal Ministry: It is implemented by the Ministry of Labour and Employment.
• Implementing Agency: The scheme is executed through the Employees' Provident Fund Organisation (EPFO).

Core Objective

• The primary objective of PMRPY is to incentivize employers for generating new employment opportunities and to bring informal sector workers into the formal workforce.
• It aims to reduce the financial burden of statutory employee benefit contributions on employers, encouraging them to expand their workforce.

Key Features and Incentives

• Financial Incentive: Under the scheme, the Government of India pays the entire employer’s contribution of 12% (or as admissible from time to time) towards both the Employees' Provident Fund (EPF) and the Employees' Pension Scheme (EPS).
• Evolution of Contribution: Initially, the government paid only the EPS share of 8.33%. However, with effect from April 1, 2018, the benefit was enhanced to cover the full 12% employer contribution (both EPF and EPS).
• Duration of Benefit: The financial subsidy is provided for a period of three years for every new eligible employee.

Eligibility Criteria

• Wage Limit: The scheme specifically targets workers earning a monthly wage of less than or equal to ₹15,000.
• New Employees: The benefit is applicable to new employees who have not been registered with the EPFO prior to their employment under the scheme.
• Establishment Criteria: Eligible employers must be registered with the EPFO under the EPF Act, 1952, and must possess a valid Labour Identification Number (LIN).

Timeline and Scope

• The terminal date for the registration of new beneficiaries under the scheme was March 31, 2019.
• Registered beneficiaries continue to receive the 3-year subsidy benefit from their respective dates of registration.
• It successfully covered over 1.21 crore beneficiaries across more than 1.52 lakh establishments during its operational window.