With an aim to encourage businesses to do fresh hiring amid the pandemic, the Union Cabinet has approved Rs 22,810 crore outlay for the Atmanirbhar Bharat Rojgar Yojana. The Union Cabinet, chaired by the Prime Minister, Narendra Modi, has given its approval for Atmanirbhar Bharat Rojgar Yojana to boost employment in formal sector and incentivize creation of new employment opportunities during the Covid recovery phase under Atmanirbhar Bharat Package 3.0.
The Cabinet has approved an expenditure of Rs 1,584 crore for the current financial year and Rs 22,810 crore for the entire Scheme period - 2020-2023. Under the scheme, the government will provide subsidy for two years in respect of new employees engaged on or after Oct. 1, 2020, and up to June 30, 2021, Labour Minister Santosh Gangawar said in a briefing on the Cabinet decision. The government will pay both 12% employees' contribution and 12% employers' contribution i.e. 24% of basic wages towards employees provident fund in respect of new employees in establishments employing up to 1,000 employees for two years.
However, the government will pay only employees' share of EPF contribution i.e. 12% of wages in respect of new employees in establishments employing more than 1,000 employees for two years. An employee drawing a monthly wage of less than Rs 15,000, who was not working in any establishment registered with the Employees' Provident Fund Organisation before Oct. 1, 2020, and did not have a Universal Account Number or EPF Member account number prior to Oct. 1, 2020, will be eligible for the benefit.
Any EPFO member possessing Universal Account Number drawing a monthly wage of less than Rs 15,000, who exited employment during Covid pandemic from March 1, 2020, to Sept. 30, 2020, and did not join employment in any EPFO covered establishment up to Sept. 30, 2020, will also be eligible to avail the benefit. The EPFO will credit the contribution in Aadhaar seeded account of members in an electronic manner. The EPFO will develop software for the scheme and also develop a procedure which is transparent and accountable.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: