Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

Why in News?

The Ministry of labour and employment has presented some data in the Lok Sabha about the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).

What is the data?

• Over one crore new employees had joined the workforce as part of the PMRPY between August 2016 and March 2019.
• About 57% of them came from 5 States — Maharashtra, Tamil Nadu, Karnataka, Gujarat and Haryana.
• Of the total new employees who joined the workforce during this period,
  1. 40 % - Joined ‘expert services’
  2. 2 % - Joined in financial establishments
  3. 7 % (each) - Commercial trading, textiles and building construction
  4. 5 % (each) - Garment-making and engineering sectors.

What is PMRPY about?

• It is being implemented by the Ministry of Labour and Employment and is operational since August, 2016.
• It was launched for incentivising employers for generation of new employment.
• The Government of India will pay the entire employer’s contribution (12 per cent or admissible contribution) towards the Employees’ Provident Fund (EPF) and the Employees’ Pension Scheme (EPS) for all eligible new employees for all sectors for 3 years.
• All new eligible employees will be covered under the PMRPY Scheme till 2019-20.

Who are eligible?

• All establishments registered with EPFO i.e. Employees' Provident Fund Organisation can apply for availing benefits under the scheme subject to the certain conditions.
• Employees who are earning wages less than Rs 15,000/- per month are eligible.

What are the benefits of the scheme?

• The employer is incentivised for increasing the employment base of workers in the establishment.
• 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.

Source: Business Line