PMRPY stands for Pradhan Mantri Rojgar Protsahan Yojana. This scheme was launched to incentivize employers to create jobs, specifically targeting workers earning less than Rs. 15,000 per month. It aims to encourage small and medium-sized enterprises and micro-businesses to take advantage of its benefits.
Objectives of PMRPY
The primary objectives of PMRPY are:
- To offer incentives to registered employers for generating jobs.
- To contribute 3.67% towards the Employees’ Provident Fund (EPF) for the textile industry.
- To establish specific eligibility criteria for employers creating new jobs.
- To stimulate job creation by employers.
- To assist a significant number of workers in finding employment.
Features of PMRPY
- EPF and EPS Contributions
- For the first three years of a new employee’s tenure, the Indian government will pay 12% towards the EPF and EPS contributions. This arrangement exempts employees from paying their EPF share and relieves employers from contributing to the EPS portion, provided the employee stays with the same company for three years.
- Employment Opportunities
- The scheme helps employees discover new job opportunities and avoid EPF payments for an extended period, while employers can save on EPS contributions and quickly fill their vacant positions.
- Labour Identification Number (LIN)
- The PMRPY requires organizations to obtain a Labour Identification Number (LIN), a unique identifier issued by the Ministry of Labour. This simplifies business regulations, enabling companies to submit returns and complete registrations through a single online window on the Shram Suvidha Portal.
PMRPY Eligibility Criteria
- Companies must be registered with the Employees’ Provident Fund Organization (EPFO).
- Employees earning a monthly salary of less than Rs. 15,000 can apply for the scheme.
- Organizations must have a Labour Identification Number (LIN) and be registered with the EPFO.
- Employees’ Universal Account Numbers (UAN) and Aadhaar numbers must be linked.
