Atmanirbhar Bharat Rozgar Yojana is a new employment policy that is launched by the Government of India. The Government of India (GoI) on Thursday (12th Nov 2020) announced this scheme, to incentivize the creation of new employment opportunities.
All the employers and the employees under the lower-income segment will be benefitted from this policy. This scheme has been designed to contribute to the retirement fund by employees as well as employers for a period of two years.
Before the announcement of this scheme, the Finance Minister in the press conference on Thursday said that the Indian Economy is recovering after the lockdown. She also added that the PMI index rose to 58.9 percent in October as against 54.6 percent in the previous month. Even the FDI investment in India in April-Aug was $35.37 bn, a 13% rise on Y-O-Y (year on year) basis. The Finance Minister announced that the new scheme will create new jobs by giving subsidies to those establishments or businesses that make new hires.
What is Atmanirbhar Bharat Rozgar Yojana (ABRY) Scheme?
This scheme is a subsidy based scheme, whereby the Subsidy under this scheme would cover the retirement fund contribution by both the employers and the employees for two years.
Under the Atmanirbhar Bharat Rozgar Yojana, every organization which is registered under the EPFO (Employees Provident Fund Organisation) would be given this subsidy when they hire new employees with lower wages. Employees’ contribution (12% of wages) and Employer contribution (12% of wages), totaling 24% would be given to the establishment or business for 2 years.
This scheme will cover every newly joined employee whose monthly wage is below Rs. 15,000. In addition, this scheme will also cover employees whose monthly salary is below Rs. 15,000 and lost his job during COVID-19 pandemic after March 15, 2020, and has got a job on or post-October 1, 2020.
Criteria for the companies to qualify for Subsidy
In order to get the benefits of the Atmanirbhar Bharat Rozgar Yojana, the companies have to meet the following conditions:
The organization should be registered under the EPFO (Employees Provident Fund Organisation).
The establishment should have employees count below 50 and a minimum of 2 employees.
Those establishments that have employees count more than 50, will have to add a minimum of 5 employees.
This scheme will be operational till June 30, 2021.
Rs. 18000 Crore Urban Housing Scheme
The honorable FM also announced additional Rs. 18000 crore for Urban Housing Scheme in the same conference. This is the additional money that has been pumped into the system for the urban housing scheme to help complete real estate projects. The scheme will also boost jobs in the economy. This money is over Rs. 8,000 crore that was provided earlier this year. This additional money is likely to create 12 lakh more jobs and even the demand for steel and cement is likely to increase.
The Finance Minister also announced additional Rs. 900 crore to Department of Biotechnology for COVID-19 vaccine research.
From the discussion above it is clear that the economy is towards the revival mode. And the government is doing everything necessary and taking all measures for the smooth transition of the economy from the COVID-19 times to the economic revival times. And the creation of jobs and reducing unemployment remains the top priority of the government.
That’s all for today’s Market Forensics. We’ll be back tomorrow with another interesting market news and analysis. Till then, Take care and Happy investing!!