You are on page 1of 2

NOTE ON PRADHAN MANTRI ROJGAR PROTSAHAN YOJNA

Pradhan Mantri Rojgar Protsahan Yojana (See Here) enables incentive towards employers registered
under EPFO for the creation of new Employment wherein the Indian Government will be paying the 8.33%
of EPS contribution related to employer towards new employment created for up to 3 years.

It also permits employers registered with EPFO to obtain a 3.67% EPF contribution paid by the GOI in
adding up to 8.33% EPS contribution. This benefit can be obtained by Textile (apparel) Sector
establishments that deal with the Manufacture of wearing apparel, in particular NIC Codes 1410 1430.

Eligibility Criteria for the Establishments for availing Benefits under this Yojna:
 Establishments must be registered with Employee’s Provident Fund Organization for obtaining
benefits related to the Scheme.
 It must also have Labor Identification Number (LIN) allotted to them under Shram Suvidha Portal.
 The establishment must have a valid organizational PAN, digital signature and a bank account by
means of which payments to establishment will be made.
 The eligible employer should have added new employees to the reference base (March 2016) of
workers to obtain benefits under the Scheme from August, 2016 onwards.
 The reference base of workers will be calculated by the number of employees against whom the
employer has deposited the 12% (3.67% EPF + 8.33% EPS) with EPFO as on 31st March, 2016, as
ascertained or verified from the monthly ECR (Electronic Challan Cum Return) for March, 2016.
 Monthly ECR for March, 2016 must have been filed.
 For new establishment obtaining registration with EPFO after 1st April, 2016, the employer can
obtain of PMRPY benefits for all new qualified employees.

For the purpose of this scheme the Definition of “New Employee” as:
A new employee for the reasons of the scheme is thereby defined as:

 an employee who earns less than INR 15000 per month and
 not working in any establishment that is registered with the EPFO in the earlier period (prior to
01st April, 2016) and
 did not have a Universal Account Number preceding to 01st April, 2016.

The employers will continue to get the 8.33% contribution that is paid by the Government for
these qualified new employees for the next 3 years, provided they continue in employment by
the same employer. The 8.33% contribution will be paid by Indian Government after the employer
has paid the 3.67% EPF contribution for these new employees every month. To prevent any
penalty on the EPF or EPS contribution, the employer is recommended to present the PMRPY
online form at the earliest, if possible by the 10th of the subsequent month.

Employers or Establishments applying for the Scheme shall be completely accountable for the
information uploaded and be legally responsible for dues and penalties under the Employees’
Provident Fund Scheme, 1952 for misstatement, misrepresentation etc.
NOTE ON PRADHAN MANTRI ROJGAR PROTSAHAN YOJNA

The Scheme will be in operation for a period of 3 years for the duration of which the government
will persist to pay the employer’s share of 8.33% EPS contribution for the subsequent 3 years.
That is, all new qualified employees will be subject to coverage under the PMRPY Scheme till 2019-
20.
Using the Portal further the process be taken care of. (https://www.pmrpy.gov.in)