How to get benefit under Aatmanirbhar Bharat Rozgar Yojana without violation of rules & regulations/Terms & conditions/Law

Subject: How to get benefit under Aatmanirbhar Bharat Rozgar Yojana without violation of rules & regulations/Terms & conditions/Law

Refer: Aatmanirbhar Bharat Rozgar Yojana

Dear Sir/Madam,

Kindly we request you to please clarify following things

1.If employee leaves his/her employment on 30/09/2020 and rejoins on the same organization again on 01/10/2020, Is he/she eligible to get benefit under Aatmanirbhar Bharat Rozgar Yojana without violation of rules & regulations/Terms & conditions/Law.

2.If employee leaves his/her employment on 30/09/2020 and rejoins on the another organization again on 01/10/2020 (Here, Director is same for both organization), Is he/she eligible to get benefit under Aatmanirbhar Bharat Rozgar Yojana without violation of rules & regulations/Terms & conditions/Law.

3.If employee leaves his/her employment on 30/09/2020 and rejoins on the another organization again on 01/10/2020 (Here, Director is different for both organization), Is he/she eligible to get benefit under Aatmanirbhar Bharat Rozgar Yojana without violation of rules & regulations/Terms & conditions/Law.

4.Employer has paid ECR Contribution for the wage month of September 2020 and has not paid ECR Contribution for the wage month of October 2020. Employer cancels ECR for the wage month of October 2020, gives date of exit as 30/09/2020 for all employees and again enrolls all employees with marking of date of joining as 01/10/2020. In this scenario, Can all employee get benefit under Aatmanirbhar Bharat Rozgar Yojana without violation of rules & regulations/Terms & conditions/Law.

Please clarify.

@T.Thirumurugan
there are several pre-conditions to this subsidy announcement. First, the addition of new employees will be above the base of September employee count. Second, if a company has upto 50 workers by end of September, then it needs to create at least two jobs to get eligible for the EPF subsidy and it will be an addition of “five new employees if reference base is more than 50 employees".
https://www.livemint.com/news/india/...173581247.html

The scheme itself yet to be notified though has been widely publicised. Generally the scheme would cover as follows though exact detailed stipulations are still awaited.

"Aatma Nirbhar Bharat Rozgar Yojana" a new scheme announced by Hon'ble Finance Minister Nirmala Sitharaman to create employment opportunities in the country during the COVID-19 recovery phase.
- This scheme will be processed as a note to get the cabinet's approval. Under this scheme, Government will provide subsidy of 24% or 12% for two years to establishments for new recruits.
The month of September will be considered as the base for the scheme.
Eligibility of the Employee:
- The monthly wages of the employee should be reckoned as ₹ 15,000.
- Those employees, who have lost their jobs between March 1, 2020 and September 30, 2020 and rejoin work, will be eligible for the subsidy.
The new candidates who enroll between October 1, 2020 and till June 30, 2021 will get the benefits under the scheme for a period of two years.
Eligibility of the Establishment:
The establishment should be registered under EPFO.
With up to 1000 employees who earn under ₹ 15,000 per month, 12% of employee’s contribution + 12% of employer’s contribution will be paid entirely by the Central Government.
For above 1000 employees who earn under ₹ 15,000 per month, only 12% of employee’s contribution will be paid by the Central Government.
Establishments with less than 50 employees must recruit at least two new employees and with more than 50 employees must employ at least five new employees.
Note: This information is only a press release, official notification is expected which will notified specifying the conditions and eligibility etc.,in detail in due course.

Eligibility:

1. The scheme is available for all those workers who lost job between 1st March 2020 to 30th September 2020 and for new workers employed after 1st October 20202. Subsidy available for workers with wages upto Rs. 15,000 per month. Which means if any establishments hire new employees on or after 1st October 2020 either a person who had lost job between 1st March 2020 to 30th September 2020 or any new employees who has never registered with EPFO, such establishments get this benefit.

2.Further Conditions-The establishments get the benefit only if below conditions satisfied-

Establishment with <=50 employees –minimum 2 employees to be hired.

Establishment with > 50 employees – minimum 5 employees to be hired

(Reference for employee base is as on 30th Sep 2020).

The subsidy amount under the scheme, which will be operational till June 30, 2021, will be credited upfront only in Aadhaar-seeded EPFO accounts (UAN) of new employees.

Period:New/Eligible employees employed between 1st October 2020 to 30th June 2021 will be eligible for the benefit.

The benefit is available for a period of Two years from the date of their employment during the above mentioned period.

Applicability:Establishments employing upto 1000 employees – 24% of PF contribution which is both employer and employee contribution shall be borne by Govt. Establishments employing more than 1000 employees – Employee contribution of 12% shall be borne by Govt.

Implications:1. Only 2 slab of <50 and >50 may offer huge variation.

Probably considering few more slabs would have benefit the establishments better

2. The scheme limiting salary to Rs. 15,000 will benefit the low/semi skilled employees but not high skilled employees.

May have to await detailed scheme to be released by the GoI in due course.

Overview:Overall it’s a good move by the Govt to boost the employment after the pandemic. Establishments, who have reduced the manpower due to cost burden may look back at hiring since 12 to 24% of cost would be subsidized by the Govt

Also routing the benefit through EPFO account instead of direct benefit to either employees or employers has enabled structuring the scheme easy, simple and transparent and aimed at the employers & employees to reap the benefits.

Is this applies only for new recruits or everyone who draws their salary up to 15000/-

We have to await formal publication of the scheme after due approval of the Cabinet/formalities.

Dear Mr. T.Thirumurugan,
The answer is 'NO' to all your queries.
Because the rejoined employee is still member of PF and could not withdraw his PF as there is no 60 days unemployment period.
Secondly it clearly indicates the management's intention for manipulating records. How can a person leave on close of working day of 30th Sept. 2020 and joined on 1st Oct. 2020 that to in sister concern?
1. The newly joined employee required to fill PF Form 11, where he has to declare that he was not a member of PF and within a day how he could forget, he was member of PF?
2. Have you paid his final settlement on or before 30.09.2020? Do you have any documentary evidence for that?
3. Do you have any documentary evidence thru email etc. that the employee has submitted his resignation and given notice period.
Instead, you can wait for Govt. Notification and show employee's joining date after 60 days, process their PF withdrawal etc., subject to their salaries are below INR15,000/- Per Month.
Regards,
Suresh

The scheme limiting salary to Rs. 15,000 will benefit the low/semi skilled employees but not high skilled employees.
Sir,
Whether the limiting salary to Rs.15,000.00 is whether it is Gross Salary or P.F.Wages.
Example : 1 :if basic is 12000.00 and DA is 2000.00 and HRA is 1000.00 whether he will get the benefit since if the salary is Rs. 15,000.00 he will not get the benefit.
Example :2 : if Basic is 12000.00 and DA is 2000.00 no HRA he is eligible.
Example : 3: if the Basic is 12000.00 and DA is 2000.00 and HRA is 48000. His total salary will be 18800.00 but PF wages will be 14000 which is less than 15000.00. In this case whether he is eligible for the Scheme.
Any Seniors please guide in this regard

Please find attached the circular from PF office and guidelines regarding Athama Nirbhar Bharath Rozgar Yojana.

Dear Sirs,
The ABRY scheme has already been notified and is available in EPF website. Those whose monthly salary is below 15000/- are entitled to be covered under the scheme. Employee contribution will directly be reimbursed to the aadhar linked bank account of the employee and employer contribution will be deducted in the ECR itself like PMRPY.
N.LOKANADHA BABU
Manager-HR