Scheme Guidelines of Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)
Enclosed please find herewith an O.M. No. DGE-U-130IS/I/2016-MP(G) dated 9th August, 2016, received from the Ministry of Labour & Employment on the above subject.
Pradhan Mantri Rojgar Protsahan Yojana is a scheme announced in the Union Budget 2016-17 to incentivize employers for the generation of new employment, where the Government of India will be paying the 8.33% EPS contribution of the employer for the new employment.
It is requested that the scheme may be popularized amongst the industry for their wider participation and coverage. The scheme guidelines are enclosed. Kindly go through the guidelines and let us know if it is applicable to all or only new establishments or the textile industry only, as we have not heard any news from the PF department.
Encl. as above.
No. DGE-U-13015/1/2016-MP (G)
Government of India Ministry of Labour & Employment Directorate General of Employment 3/10, Jam Nagar House, Shahjahan Road, New Delhi-110011
Dated: 09.08.2016
OFFICE MEMORANDUM
Subject: Scheme Guidelines for Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).
The Scheme will be operational with effect from 9th August, 2016, i.e., the date of issue of this OM. EPFO will make necessary arrangements for the software development for the implementation of the PMRPY Scheme.
The undersigned is directed to enclose herewith the guidelines on Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), a scheme to incentivize employers registered with the Employees' Provident Fund Organisation (EPFO) for job creation by the Government paying the 8.33% contribution of employers to the Employee Pension Scheme (EPS) in respect of new employees having a new Universal Account Number (UAN). For the textile (apparel) sector, the Government will also be paying the 3.67% Employees Provident Fund (EPF) contribution of the eligible employer for these new employees. The Scheme may be popularized amongst the industry for wider participation and coverage.
Encl: as above
(Dr. Shikha Anand) Director (Employment) Tel. Fax. 23386737
1. Finance Secretary & Secretary Expenditure, Ministry of Finance, North Block, New Delhi - 110001 2. Secretary, Ministry of Textiles, Udyog Bhawan, New Delhi - 110011 3. Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce & Industry, Udyog Bhawan, New Delhi -110011 4. Secretary, Ministry of Micro, Small and Medium Enterprises, Udyog Bhawan, New Delhi -110011 5. Secretary, Ministry of Skills Development & Entrepreneurship, Shivaji Stadium, New Delhi - 110001 6. Secretary, Ministry of Corporate Affairs, Shastri Bhawan, New Delhi - 110001 7. CEO, NITI Aayog, Sansad Marg, New Delhi-110001 8. OSD, Ministry of Labour & Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi - 110119 9. Shri SN Tripathi, Development Commissioner, MSME, Ministry of Commerce & Industry, Nirman Bhawan, New Delhi - 110108 10. Smt. Sunita Sanghi, Adviser, NITI Aayog, Sansad Marg, New Delhi-110001 11. Dr. V.P. Joy, Central Provident Fund Commissioner, Employees' Provident Fund Organisation (EPFO), EPFO Head Office, Bhavishya Nidhi Bhawan, 14, Bhikaiji Cama Place, New Delhi -110066. 12. Shri Arunish Chawla, Joint Secretary, Plan Finance-II, Department of Expenditure, Ministry of Finance, North Block, New Delhi-110001. 13. Ms. Sunaina Tomar, Joint Secretary, Ministry of Textiles, Udyog Bhawan, New Delhi-110001.
Internal
14. Shri PP Mitra, Principal Labour & Employment Adviser, MoLE, Shram Shakti Bhawan, Rafi Marg, New Delhi. 15. Shri Heeralal Samariya, Additional Secretary, MoLE, Shram Shakti Bhawan, Rafi Marg, New Delhi. 16. Smt. Meenakshi Gupta, JS & FA, MoLE, Shram Shakti Bhawan, Rafi Marg, New Delhi. 17. Shri Manish Gupta, Joint Secretary, MoL&E, Shram Shakti Bhawan, New Delhi. 18. DG ESIC, Chief Labour Commissioner, JS (RA), JS (RKG), DG FASLI, DGMS, DG LB, DGLW, CBWE, DDG(C), EA, Addl CPFC(IS)- EPFO. 19. NIC - for uploading on the websites of MoL&E, EPFO, etc.
Ministry of Labour & Employment Pradhan Mantri Rojgar Protsahan Yojana: A Scheme to Promote/Incentivize Employment Generation
SCHEME GUIDELINES
A. Introduction
India has a significant advantage of a young population and a declining dependency ratio, offering huge potential for a demographic dividend. There are, however, challenges that need to be addressed to fully reap this unique dividend in the fast-changing global scenario. In the last decade, the growth of the economy at an annual rate of 7 to 8% was accompanied by low growth in jobs. The proportion of persons in the labour force declined from 43% in 2004-05 to 39.5% in 2011-12, with a sharp drop in the female participation rate from 29% to 21.9%. Although the overall unemployment rate is at 2.2%, the unemployment rates for youth in the age group 15 to 29 years, and particularly those possessing a secondary level of education and above, are higher. More than 52% of the workers are self-employed, and a significant proportion of women workers are primarily home-based.
As per the Sixth Economic Census (2013), around 58.5 million establishments were in operation, of which 59.48% were in rural areas and 40.52% in urban areas. Further, about 77.6% of establishments (45.36 million) were engaged in non-agricultural activities. These establishments employ around 131.29 million persons, of which 51.71% were employed in rural areas and 55.71% were working in establishments having at least one hired worker. Thus, there is significant potential for employment in these establishments, especially those covered under the Employees' Provident Fund Organisation (EPFO).
In the Budget Speech 2016-17, it was stated that "In order to incentivize the creation of new jobs in the formal sector, the Government of India will pay the Employee Pension Scheme contribution of 8.33% for all new employees enrolling in EPFO for the first three years of their employment. This will incentivize the employers to recruit unemployed persons and also to bring into the books the informal employees. In order to channelize this intervention towards the target group of semi-skilled and unskilled workers, the scheme will be applicable to those with a salary up to Rs15,000 per month. I have made a budget provision of Rs 1,000 crore for this scheme."
B. Scheme Objectives
The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Plan Scheme has been designed to incentivize employers for the generation of new employment, where the Government of India will be paying the 8.33% EPS contribution of the employer for the new employment. This scheme has a dual benefit, where, on the one hand, the employer is incentivized for increasing the employment base of workers in the establishment, and on the other hand, 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.
C. Definitions
The definitions mentioned in The Employees' Provident Fund Scheme, 1952, Section 2 would be applicable mutatis mutandis to the PMRPY scheme as well. The following definitions would also be relevant:
(a) Electronic Challan cum Return (ECR) are the monthly challans/returns submitted online to the EPFO by the employers/establishments.
(b) Universal Account Number (UAN) is the unique account number issued by the EPFO to the employees. For the purpose of the PMRPY Scheme, the UANs need to be Aadhaar seeded and verified.
(c) PMRPY Reference Base: For the PMRPY Scheme, the reference base is taken from the ECR return filed by the employer/establishment as on 31st March, 2016, and is the number of employees against whom the employer has deposited/filed the employer's contribution of 12% (3.67% EPF + 8.33% EPS) of wages with EPFO. Similarly, for 2017-18, the reference base will be taken as 31st March, 2017, and so on in subsequent years. In the case of new establishments getting registered with EPFO after 1st April, 2016, the reference base would be taken as Zero/NIL, and all new employees would be entitled to be covered under the Scheme, subject to other eligibility conditions.
(d) National Industrial Classification Code (NIC) - 2008 is the code developed and maintained by the Ministry of Statistics & Programme Implementation for codification and categorization of industries based on their economic activity.
(e) New Employee, for the purposes of the scheme, is an employee earning less than Rs. 15,000 per month, who was not working in any establishment registered with the EPFO in the past and did not have a Universal Account Number prior to 1st April, 2016.
D. Scheme Eligibility
All establishments registered with the Employees' Provident Fund Organisation (EPFO) can apply for availing benefits under the scheme subject to the following conditions:
(a) Establishments registered with the Employees' Provident Fund Organisation (EPFO) should also have a Labour Identification Number (LIN) allotted to them under the Shram Suvidha Portal (https://shramsuvidha.gov.in). The LIN will be the primary reference number for all communication to be made under the PMRPY Scheme.
(b) The eligible employer must have added new employees to the reference base of workers in order to avail benefits under the Scheme from August, 2016 onwards. The reference base of workers will be determined 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/verified from the monthly ECR for March, 2016. For example, an establishment, say M/s ABC Ltd. had filed an ECR for the employers' contribution for 45 employees/workers in March, 2016. In the month of April, 2016, the establishment has added, say, 15 new workers bringing the total of employees to 60, the employer will be eligible to apply for the PMRPY scheme benefits for these 15 new employees. The employer will not be eligible to avail of PMRPY benefits if there is no new employment vis-a-vis the reference base in any subsequent month. The new employee, as mentioned in para 5(e) above, is one that had not worked in any EPFO registered establishment or had a Universal Account Number, in the past, i.e., prior to 1st April, 2016.
(c) For new establishments coming into existence/getting registered with EPFO after 1st April, 2016, the reference base will be taken as Zero/NIL employees. Thus, the employer can avail of PMRPY benefits for all new eligible employees.
(d) The PMRPY scheme is targeted for employees earning wages less than Rs 15,000/- per month. Thus, new employees earning wages more than Rs 15,000/- per month will not be eligible. A new employee is one who has not been working in an EPFO registered establishment on a regular basis prior to 1st April, 2016, and will be determined by the allocation of a new Aadhaar seeded Universal Account Number (UAN) on or after 01.04.2016. In case the new employee does not have a new UAN, the employer will facilitate this through the EPFO portal.
(e) The employers will continue to get the 8.33% contribution paid by the Government for these eligible new employees for the next 3 years, provided they continue in employment by the same employer. The 8.33% contribution will be paid by GOI after the employer has remitted the 3.67% EPF contribution for these new employees each month. To avoid any penalty on the EPF/EPS contribution, the employer is advised to submit the PMRPY online form at the earliest, preferably by the 10th of the following month.
In the case of the textile (apparel) sector, the employers are also eligible to get the 3.67% EPF contribution paid by the Government as mentioned in the PMRPY online form. This benefit can be availed of by the textile (apparel) sector establishments dealing with the Manufacture of wearing apparel, in particular NIC Codes 1410 and 1430. The Government, in this case, will also pay the EPF contribution of 3.67% in addition to paying the EPS contribution of 8.33%.
The payment of 8.33% EPS and 3.67% EPF by the Government will be made after the employer has credited the 12% EPF contribution of the employees with EPFO.
The industry sector/sub-sectors covered by this component are the following NIC Codes:
(1) NIC 1410: Manufacture of wearing apparel, except fur apparel a. NIC 14101: Manufacture of all types of textile garments and clothing accessories b. NIC 14102: Manufacture of raincoats of waterproof textile fabrics or plastic sheetings c. NIC 14105: Custom tailoring d. NIC 14109: Manufacture of wearing apparel not elsewhere classified
(2) NIC 1430: Manufacture of knitted and crocheted apparel a. NIC 14301: Manufacture of knitted or crocheted wearing apparel and other made-up articles directly into shape (pullovers, cardigans, jerseys, waistcoats, and similar articles) b. NIC 14309: Manufacture of other knitted and crocheted apparel including hosiery
(f) Employers/Establishments applying for the Scheme shall be fully responsible for the information uploaded. If at any time, it is found that the information submitted is incorrect or false, it will be assumed that the EPS payment (and EPF payment for the textile sector) has not been made for these employees. The employer will then be liable for dues and penalties as already specified under the relevant provisions of The Employees' Provident Fund Scheme, 1952.
The Scheme will be in operation for a period of 3 years and the Government of India will continue to pay the 8.33% EPS contribution to be made by the employer for the next 3 years. That is, all new eligible employees will be covered under the PMRPY Scheme till 2019-20.
The Government will make available the necessary funds for the Scheme to EPFO in advance for payment of 8.33% EPS contribution and the 3.67% EPF contribution for the textile (apparel) sector on a regular basis based on the estimates of funds projected by EPFO. EPFO will provide Management Information System (MIS) and other such analytical reports to the Ministry as are necessary for effective monitoring of the scheme. Third-Party Evaluation will also be undertaken on a periodic basis. An elaborate IEC media and awareness campaign will be put in place for effective propagation of the PMRPY Scheme.
Appendix
Instructions for Availing Benefits under PMRPY Scheme (8.33% EPS Contribution)
The PMRPY scheme aims to incentivize employers for employment generation by the Government paying the employers' EPS contribution of 8.33% for the new employees, for the first three years of their employment and is proposed to be made applicable for unemployed persons that are semi-skilled and unskilled.
PART A:
a) Employers are to log in to the PMRPY portal (https://pmrpy.gov.in) using their LIN/EPFO registration ID (Format as at Annex-I).
b) Enter the organizational details that are required as per the format including the Organizational PAN. It is necessary to mention the nature of industry/sector as per National Industrial Classification Code NIC-2008, maintained by the Ministry of Statistics & Programme Implementation. The appropriate NIC code is determined/assessed by the value added by production of different products and services or net revenue derived from various activities, i.e., the industry code of the primary manufactured product (output) of that establishment. In case of multi-product establishments, the appropriate NIC code is determined by the category of the product contributing the maximum value added for the establishment. Where such assessment is not possible, classification may be done in terms of gross revenue attributed to the products, or services of the establishments, the number of persons employed for various activities.
c) For the textile (apparel) sector dealing with the Manufacture of wearing apparel, in particular, NIC 1410 (Manufacture of wearing apparel, except fur apparel); and NIC 1430 (Manufacture of knitted and crocheted apparel), the Government will also pay the EPF contribution of 3.67%, in addition to payment of the EPS contribution of 8.33%. The detailed sub-sectors covered for this component are given below:
(1) NIC 1410: Manufacture of wearing apparel, except fur apparel a. NIC 14101: Manufacture of all types of textile garments and clothing accessories b. NIC 14102: Manufacture of raincoats of waterproof textile fabrics or plastic sheetings c. NIC 14105: Custom tailoring d. NIC 14109: Manufacture of wearing apparel not elsewhere classified
(2) NIC 1430: Manufacture of knitted and crocheted apparel a. NIC 14301: Manufacture of knitted or crocheted wearing apparel and other made-up articles directly into shape (pullovers, cardigans, jerseys, waistcoats, and similar articles) b. NIC 14309: Manufacture of other knitted and crocheted apparel including hosiery
d) The employment to be covered under the scheme would comprise new employment for workers earning wages less than Rs. 15,000/- per month. The description of the post (job role) for the new employment needs to be specified along with the date of joining and date of exit, if applicable.
e) PMRPY form should be submitted by eligible employers at the end of each month, preferably by the 10th day of the following month.
f) In case the employer does not submit the information online on the PMRPY form by the 10th of the following month, he will not be eligible for availing benefits under the PMRPY Scheme for that month.
g) The submission of the form will be determined by the employer having paid the 3.67% EPF contribution in respect of these new employees.
PART B: Eligibility Criteria
1. Eligibility Criteria for establishments for claiming benefit under the scheme:
a) Establishment should be registered with EPFO under EPF Act 1952 and have a valid LIN.
b) In case the establishment does not have a Labour Identification Number (LIN), it may apply through the Shram Suvidha Portal (https://shramsuvidha.gov.in).
c) Establishment should have a valid organizational PAN.
d) Establishment must have a valid Bank Account, the details of which are to be entered and through which payments may be made to the establishment.
e) Establishment should have submitted their ECR for the month of March, 2016.
f) Establishment should have increased the number of employees on or after 01.04.2016.
g) For new establishments registered after 01.04.2016, all new employees can be covered subject to para 2 below.
2. Necessary conditions for eligibility of employees under PMRPY:
a) New employee should have joined in the establishment (refer 1(e) above) on or after 01.04.2016 and should not have been a regular employee in any EPF registered establishment prior to this.
b) Employer should ensure that the new employee has a valid UAN which is Aadhaar linked. In case it is not available, it may be obtained from the EPFO website (http://www.epfindia.com). The mobile number and other contact details are to be captured by EPFO.
c) The monthly wages of the new employee should be less than Rs. 15,000.
d) The EPS contribution for the new employee will be available for 3 years.
e) In case an establishment eligible for a scheme has a drop/fall in employment from the reference base, the establishment will not be eligible for the scheme in the months where employment is below this reference base.
3. Validation of new employees:
a) Employer will upload the ECR file as proposed in ECR 2.0.
b) ECR will be accompanied with an online certificate from the employer stating that the submission is claimed only in respect of new employees without past service and for newly created posts.
4. Start and continuation of Scheme: The PMRPY Scheme will become operational from the date of issue/approval of the Scheme Guidelines (i.e., 9th Aug, 2016). The establishment will continue to update the PMRPY interface each month (latest by the 10th of the following month) so that the necessary EPS payment and EPF payment (for Textile (Apparel) Sector) continues.
a) The PAN and LIN of the establishment will be validated.
b) The details of the new employee (as submitted by the employer in the ECR) will be validated from the UAN database.
c) UAN seeded with Aadhaar number would be validated in UIDAI/EPFO database for verification and deduplication.
d) The bank details (account no., IFSC code, etc.) of the employer will be checked by the banking gateway by EPFO.
e) After due verification, the system will compute the amount due for that establishment against the verified new employee.
f) Based on the information provided by the establishment and having been verified, the remittance made for the 3.67% EPF contribution against these new eligible employees will trigger the release of the 8.33% EPS contribution. This will be drawn from the PMRPY pool towards the EPS account for a period of 3 years for the new employee.
g) In the case of the textile (apparel) sector, the 3.67% EPF contribution will be paid to EPFO on submission of the ECR and PMRPY form.
PART C: Process Flow (for use by MoLE, EPFO, and Ministry of Textiles)
h) EPFO will need to work out an elaborate monitoring system for tracking of employee movement.
i) EPFO will undertake the creation of IEC content, media plan, and execution in an integrated manner so that the awareness of the PMRPY Scheme can be popularized amongst eligible employers.
j) The Ministry of Textiles will work out mechanisms for the IEC media awareness activities for the EPF component of the Scheme in respect of the establishments that can avail benefits under the Scheme.
k) EPFO will provide Management Information System (MIS) and other such analytical reports to the Ministry of Labour & Employment as are necessary for effective monitoring of the scheme. Third-Party Evaluation will also be undertaken on a periodic basis.
l) Linkages with NCS:
(i) PMRPY database to be accessible to NCS for analytics.
(ii) All EPF establishments to be able to log in to the NCS using their LIN.
(iii) All new employees can log in to NCS using UAN/Aadhaar.
(iv) All new vacancies covered under the PMRPY Scheme may be posted on the NCS after 01.12.2016.
(v) Current employment status of all new employees will be updated as "employed" on NCS.
***** PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 9 of 12
Annex-I PMRPY Scheme Implementation
Note: The Employer applying for the Scheme is required to fill up the following details Links to be provided to Shram Suvidha Portal for applying for a LIN.
1. Name of the Organisation: Data to be pulled from EPFO Database. Pre-filled field & Non-editable.
2. Registered Address of the Organisation: Data to be pulled from EPFO Database. Pre-filled field & Non-editable.
3. Organisation's Industry (as per NIC-2008): Data to be pulled from EPFO Database. Pre-filled field & Editable.
4. Organisation's Year of Incorporation: Data to be pulled from EPFO Database. Pre-filled field & Non-editable.
5. Organisation's PAN: User to enter PAN details. Pan Verified (One Time) gateway. Pre-filled field & Editable. Cross-checked by payment gateway. Pre-filled field & Editable.
6. IFSC Code: Cross-checked by payment gateway. Pre-filled field & Editable.
7. Bank Name: User to enter Details. To be Verified NCS.
8. PAN: User to enter Details. To be Verified NCS.
9. Date of Birth: User to enter Details. Contact Person's Mobile No.
10. Email: User to enter Details.
11. Employee Strength as on March 2016: Data to be pulled from March 2016 ECR. Pre-populated & Non-Editable.
12. Employee Strength as on Last Completed month: Data to be pulled from ECR of Last Completed month. Pre-populated & Non-Editable.
13. Current Month: Automatically Filled based on 3.67% EPF contribution - this triggers the system for PMRPY.
Regards,
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13Enclosed please find herewith an O.M. No. DGE-U-130IS/I/2016-MP(G) dated 9th August, 2016, received from the Ministry of Labour & Employment on the above subject.
Pradhan Mantri Rojgar Protsahan Yojana is a scheme announced in the Union Budget 2016-17 to incentivize employers for the generation of new employment, where the Government of India will be paying the 8.33% EPS contribution of the employer for the new employment.
It is requested that the scheme may be popularized amongst the industry for their wider participation and coverage. The scheme guidelines are enclosed. Kindly go through the guidelines and let us know if it is applicable to all or only new establishments or the textile industry only, as we have not heard any news from the PF department.
Encl. as above.
No. DGE-U-13015/1/2016-MP (G)
Government of India Ministry of Labour & Employment Directorate General of Employment 3/10, Jam Nagar House, Shahjahan Road, New Delhi-110011
Dated: 09.08.2016
OFFICE MEMORANDUM
Subject: Scheme Guidelines for Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).
The Scheme will be operational with effect from 9th August, 2016, i.e., the date of issue of this OM. EPFO will make necessary arrangements for the software development for the implementation of the PMRPY Scheme.
The undersigned is directed to enclose herewith the guidelines on Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), a scheme to incentivize employers registered with the Employees' Provident Fund Organisation (EPFO) for job creation by the Government paying the 8.33% contribution of employers to the Employee Pension Scheme (EPS) in respect of new employees having a new Universal Account Number (UAN). For the textile (apparel) sector, the Government will also be paying the 3.67% Employees Provident Fund (EPF) contribution of the eligible employer for these new employees. The Scheme may be popularized amongst the industry for wider participation and coverage.
Encl: as above
(Dr. Shikha Anand) Director (Employment) Tel. Fax. 23386737
1. Finance Secretary & Secretary Expenditure, Ministry of Finance, North Block, New Delhi - 110001 2. Secretary, Ministry of Textiles, Udyog Bhawan, New Delhi - 110011 3. Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce & Industry, Udyog Bhawan, New Delhi -110011 4. Secretary, Ministry of Micro, Small and Medium Enterprises, Udyog Bhawan, New Delhi -110011 5. Secretary, Ministry of Skills Development & Entrepreneurship, Shivaji Stadium, New Delhi - 110001 6. Secretary, Ministry of Corporate Affairs, Shastri Bhawan, New Delhi - 110001 7. CEO, NITI Aayog, Sansad Marg, New Delhi-110001 8. OSD, Ministry of Labour & Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi - 110119 9. Shri SN Tripathi, Development Commissioner, MSME, Ministry of Commerce & Industry, Nirman Bhawan, New Delhi - 110108 10. Smt. Sunita Sanghi, Adviser, NITI Aayog, Sansad Marg, New Delhi-110001 11. Dr. V.P. Joy, Central Provident Fund Commissioner, Employees' Provident Fund Organisation (EPFO), EPFO Head Office, Bhavishya Nidhi Bhawan, 14, Bhikaiji Cama Place, New Delhi -110066. 12. Shri Arunish Chawla, Joint Secretary, Plan Finance-II, Department of Expenditure, Ministry of Finance, North Block, New Delhi-110001. 13. Ms. Sunaina Tomar, Joint Secretary, Ministry of Textiles, Udyog Bhawan, New Delhi-110001.
Internal
14. Shri PP Mitra, Principal Labour & Employment Adviser, MoLE, Shram Shakti Bhawan, Rafi Marg, New Delhi. 15. Shri Heeralal Samariya, Additional Secretary, MoLE, Shram Shakti Bhawan, Rafi Marg, New Delhi. 16. Smt. Meenakshi Gupta, JS & FA, MoLE, Shram Shakti Bhawan, Rafi Marg, New Delhi. 17. Shri Manish Gupta, Joint Secretary, MoL&E, Shram Shakti Bhawan, New Delhi. 18. DG ESIC, Chief Labour Commissioner, JS (RA), JS (RKG), DG FASLI, DGMS, DG LB, DGLW, CBWE, DDG(C), EA, Addl CPFC(IS)- EPFO. 19. NIC - for uploading on the websites of MoL&E, EPFO, etc.
Ministry of Labour & Employment Pradhan Mantri Rojgar Protsahan Yojana: A Scheme to Promote/Incentivize Employment Generation
SCHEME GUIDELINES
A. Introduction
India has a significant advantage of a young population and a declining dependency ratio, offering huge potential for a demographic dividend. There are, however, challenges that need to be addressed to fully reap this unique dividend in the fast-changing global scenario. In the last decade, the growth of the economy at an annual rate of 7 to 8% was accompanied by low growth in jobs. The proportion of persons in the labour force declined from 43% in 2004-05 to 39.5% in 2011-12, with a sharp drop in the female participation rate from 29% to 21.9%. Although the overall unemployment rate is at 2.2%, the unemployment rates for youth in the age group 15 to 29 years, and particularly those possessing a secondary level of education and above, are higher. More than 52% of the workers are self-employed, and a significant proportion of women workers are primarily home-based.
As per the Sixth Economic Census (2013), around 58.5 million establishments were in operation, of which 59.48% were in rural areas and 40.52% in urban areas. Further, about 77.6% of establishments (45.36 million) were engaged in non-agricultural activities. These establishments employ around 131.29 million persons, of which 51.71% were employed in rural areas and 55.71% were working in establishments having at least one hired worker. Thus, there is significant potential for employment in these establishments, especially those covered under the Employees' Provident Fund Organisation (EPFO).
In the Budget Speech 2016-17, it was stated that "In order to incentivize the creation of new jobs in the formal sector, the Government of India will pay the Employee Pension Scheme contribution of 8.33% for all new employees enrolling in EPFO for the first three years of their employment. This will incentivize the employers to recruit unemployed persons and also to bring into the books the informal employees. In order to channelize this intervention towards the target group of semi-skilled and unskilled workers, the scheme will be applicable to those with a salary up to Rs15,000 per month. I have made a budget provision of Rs 1,000 crore for this scheme."
B. Scheme Objectives
The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Plan Scheme has been designed to incentivize employers for the generation of new employment, where the Government of India will be paying the 8.33% EPS contribution of the employer for the new employment. This scheme has a dual benefit, where, on the one hand, the employer is incentivized for increasing the employment base of workers in the establishment, and on the other hand, 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.
C. Definitions
The definitions mentioned in The Employees' Provident Fund Scheme, 1952, Section 2 would be applicable mutatis mutandis to the PMRPY scheme as well. The following definitions would also be relevant:
(a) Electronic Challan cum Return (ECR) are the monthly challans/returns submitted online to the EPFO by the employers/establishments.
(b) Universal Account Number (UAN) is the unique account number issued by the EPFO to the employees. For the purpose of the PMRPY Scheme, the UANs need to be Aadhaar seeded and verified.
(c) PMRPY Reference Base: For the PMRPY Scheme, the reference base is taken from the ECR return filed by the employer/establishment as on 31st March, 2016, and is the number of employees against whom the employer has deposited/filed the employer's contribution of 12% (3.67% EPF + 8.33% EPS) of wages with EPFO. Similarly, for 2017-18, the reference base will be taken as 31st March, 2017, and so on in subsequent years. In the case of new establishments getting registered with EPFO after 1st April, 2016, the reference base would be taken as Zero/NIL, and all new employees would be entitled to be covered under the Scheme, subject to other eligibility conditions.
(d) National Industrial Classification Code (NIC) - 2008 is the code developed and maintained by the Ministry of Statistics & Programme Implementation for codification and categorization of industries based on their economic activity.
(e) New Employee, for the purposes of the scheme, is an employee earning less than Rs. 15,000 per month, who was not working in any establishment registered with the EPFO in the past and did not have a Universal Account Number prior to 1st April, 2016.
D. Scheme Eligibility
All establishments registered with the Employees' Provident Fund Organisation (EPFO) can apply for availing benefits under the scheme subject to the following conditions:
(a) Establishments registered with the Employees' Provident Fund Organisation (EPFO) should also have a Labour Identification Number (LIN) allotted to them under the Shram Suvidha Portal (https://shramsuvidha.gov.in). The LIN will be the primary reference number for all communication to be made under the PMRPY Scheme.
(b) The eligible employer must have added new employees to the reference base of workers in order to avail benefits under the Scheme from August, 2016 onwards. The reference base of workers will be determined 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/verified from the monthly ECR for March, 2016. For example, an establishment, say M/s ABC Ltd. had filed an ECR for the employers' contribution for 45 employees/workers in March, 2016. In the month of April, 2016, the establishment has added, say, 15 new workers bringing the total of employees to 60, the employer will be eligible to apply for the PMRPY scheme benefits for these 15 new employees. The employer will not be eligible to avail of PMRPY benefits if there is no new employment vis-a-vis the reference base in any subsequent month. The new employee, as mentioned in para 5(e) above, is one that had not worked in any EPFO registered establishment or had a Universal Account Number, in the past, i.e., prior to 1st April, 2016.
(c) For new establishments coming into existence/getting registered with EPFO after 1st April, 2016, the reference base will be taken as Zero/NIL employees. Thus, the employer can avail of PMRPY benefits for all new eligible employees.
(d) The PMRPY scheme is targeted for employees earning wages less than Rs 15,000/- per month. Thus, new employees earning wages more than Rs 15,000/- per month will not be eligible. A new employee is one who has not been working in an EPFO registered establishment on a regular basis prior to 1st April, 2016, and will be determined by the allocation of a new Aadhaar seeded Universal Account Number (UAN) on or after 01.04.2016. In case the new employee does not have a new UAN, the employer will facilitate this through the EPFO portal.
(e) The employers will continue to get the 8.33% contribution paid by the Government for these eligible new employees for the next 3 years, provided they continue in employment by the same employer. The 8.33% contribution will be paid by GOI after the employer has remitted the 3.67% EPF contribution for these new employees each month. To avoid any penalty on the EPF/EPS contribution, the employer is advised to submit the PMRPY online form at the earliest, preferably by the 10th of the following month.
In the case of the textile (apparel) sector, the employers are also eligible to get the 3.67% EPF contribution paid by the Government as mentioned in the PMRPY online form. This benefit can be availed of by the textile (apparel) sector establishments dealing with the Manufacture of wearing apparel, in particular NIC Codes 1410 and 1430. The Government, in this case, will also pay the EPF contribution of 3.67% in addition to paying the EPS contribution of 8.33%.
The payment of 8.33% EPS and 3.67% EPF by the Government will be made after the employer has credited the 12% EPF contribution of the employees with EPFO.
The industry sector/sub-sectors covered by this component are the following NIC Codes:
(1) NIC 1410: Manufacture of wearing apparel, except fur apparel a. NIC 14101: Manufacture of all types of textile garments and clothing accessories b. NIC 14102: Manufacture of raincoats of waterproof textile fabrics or plastic sheetings c. NIC 14105: Custom tailoring d. NIC 14109: Manufacture of wearing apparel not elsewhere classified
(2) NIC 1430: Manufacture of knitted and crocheted apparel a. NIC 14301: Manufacture of knitted or crocheted wearing apparel and other made-up articles directly into shape (pullovers, cardigans, jerseys, waistcoats, and similar articles) b. NIC 14309: Manufacture of other knitted and crocheted apparel including hosiery
(f) Employers/Establishments applying for the Scheme shall be fully responsible for the information uploaded. If at any time, it is found that the information submitted is incorrect or false, it will be assumed that the EPS payment (and EPF payment for the textile sector) has not been made for these employees. The employer will then be liable for dues and penalties as already specified under the relevant provisions of The Employees' Provident Fund Scheme, 1952.
The Scheme will be in operation for a period of 3 years and the Government of India will continue to pay the 8.33% EPS contribution to be made by the employer for the next 3 years. That is, all new eligible employees will be covered under the PMRPY Scheme till 2019-20.
The Government will make available the necessary funds for the Scheme to EPFO in advance for payment of 8.33% EPS contribution and the 3.67% EPF contribution for the textile (apparel) sector on a regular basis based on the estimates of funds projected by EPFO. EPFO will provide Management Information System (MIS) and other such analytical reports to the Ministry as are necessary for effective monitoring of the scheme. Third-Party Evaluation will also be undertaken on a periodic basis. An elaborate IEC media and awareness campaign will be put in place for effective propagation of the PMRPY Scheme.
Appendix
Instructions for Availing Benefits under PMRPY Scheme (8.33% EPS Contribution)
The PMRPY scheme aims to incentivize employers for employment generation by the Government paying the employers' EPS contribution of 8.33% for the new employees, for the first three years of their employment and is proposed to be made applicable for unemployed persons that are semi-skilled and unskilled.
PART A:
a) Employers are to log in to the PMRPY portal (https://pmrpy.gov.in) using their LIN/EPFO registration ID (Format as at Annex-I).
b) Enter the organizational details that are required as per the format including the Organizational PAN. It is necessary to mention the nature of industry/sector as per National Industrial Classification Code NIC-2008, maintained by the Ministry of Statistics & Programme Implementation. The appropriate NIC code is determined/assessed by the value added by production of different products and services or net revenue derived from various activities, i.e., the industry code of the primary manufactured product (output) of that establishment. In case of multi-product establishments, the appropriate NIC code is determined by the category of the product contributing the maximum value added for the establishment. Where such assessment is not possible, classification may be done in terms of gross revenue attributed to the products, or services of the establishments, the number of persons employed for various activities.
c) For the textile (apparel) sector dealing with the Manufacture of wearing apparel, in particular, NIC 1410 (Manufacture of wearing apparel, except fur apparel); and NIC 1430 (Manufacture of knitted and crocheted apparel), the Government will also pay the EPF contribution of 3.67%, in addition to payment of the EPS contribution of 8.33%. The detailed sub-sectors covered for this component are given below:
(1) NIC 1410: Manufacture of wearing apparel, except fur apparel a. NIC 14101: Manufacture of all types of textile garments and clothing accessories b. NIC 14102: Manufacture of raincoats of waterproof textile fabrics or plastic sheetings c. NIC 14105: Custom tailoring d. NIC 14109: Manufacture of wearing apparel not elsewhere classified
(2) NIC 1430: Manufacture of knitted and crocheted apparel a. NIC 14301: Manufacture of knitted or crocheted wearing apparel and other made-up articles directly into shape (pullovers, cardigans, jerseys, waistcoats, and similar articles) b. NIC 14309: Manufacture of other knitted and crocheted apparel including hosiery
d) The employment to be covered under the scheme would comprise new employment for workers earning wages less than Rs. 15,000/- per month. The description of the post (job role) for the new employment needs to be specified along with the date of joining and date of exit, if applicable.
e) PMRPY form should be submitted by eligible employers at the end of each month, preferably by the 10th day of the following month.
f) In case the employer does not submit the information online on the PMRPY form by the 10th of the following month, he will not be eligible for availing benefits under the PMRPY Scheme for that month.
g) The submission of the form will be determined by the employer having paid the 3.67% EPF contribution in respect of these new employees.
PART B: Eligibility Criteria
1. Eligibility Criteria for establishments for claiming benefit under the scheme:
a) Establishment should be registered with EPFO under EPF Act 1952 and have a valid LIN.
b) In case the establishment does not have a Labour Identification Number (LIN), it may apply through the Shram Suvidha Portal (https://shramsuvidha.gov.in).
c) Establishment should have a valid organizational PAN.
d) Establishment must have a valid Bank Account, the details of which are to be entered and through which payments may be made to the establishment.
e) Establishment should have submitted their ECR for the month of March, 2016.
f) Establishment should have increased the number of employees on or after 01.04.2016.
g) For new establishments registered after 01.04.2016, all new employees can be covered subject to para 2 below.
2. Necessary conditions for eligibility of employees under PMRPY:
a) New employee should have joined in the establishment (refer 1(e) above) on or after 01.04.2016 and should not have been a regular employee in any EPF registered establishment prior to this.
b) Employer should ensure that the new employee has a valid UAN which is Aadhaar linked. In case it is not available, it may be obtained from the EPFO website (http://www.epfindia.com). The mobile number and other contact details are to be captured by EPFO.
c) The monthly wages of the new employee should be less than Rs. 15,000.
d) The EPS contribution for the new employee will be available for 3 years.
e) In case an establishment eligible for a scheme has a drop/fall in employment from the reference base, the establishment will not be eligible for the scheme in the months where employment is below this reference base.
3. Validation of new employees:
a) Employer will upload the ECR file as proposed in ECR 2.0.
b) ECR will be accompanied with an online certificate from the employer stating that the submission is claimed only in respect of new employees without past service and for newly created posts.
4. Start and continuation of Scheme: The PMRPY Scheme will become operational from the date of issue/approval of the Scheme Guidelines (i.e., 9th Aug, 2016). The establishment will continue to update the PMRPY interface each month (latest by the 10th of the following month) so that the necessary EPS payment and EPF payment (for Textile (Apparel) Sector) continues.
a) The PAN and LIN of the establishment will be validated.
b) The details of the new employee (as submitted by the employer in the ECR) will be validated from the UAN database.
c) UAN seeded with Aadhaar number would be validated in UIDAI/EPFO database for verification and deduplication.
d) The bank details (account no., IFSC code, etc.) of the employer will be checked by the banking gateway by EPFO.
e) After due verification, the system will compute the amount due for that establishment against the verified new employee.
f) Based on the information provided by the establishment and having been verified, the remittance made for the 3.67% EPF contribution against these new eligible employees will trigger the release of the 8.33% EPS contribution. This will be drawn from the PMRPY pool towards the EPS account for a period of 3 years for the new employee.
g) In the case of the textile (apparel) sector, the 3.67% EPF contribution will be paid to EPFO on submission of the ECR and PMRPY form.
PART C: Process Flow (for use by MoLE, EPFO, and Ministry of Textiles)
h) EPFO will need to work out an elaborate monitoring system for tracking of employee movement.
i) EPFO will undertake the creation of IEC content, media plan, and execution in an integrated manner so that the awareness of the PMRPY Scheme can be popularized amongst eligible employers.
j) The Ministry of Textiles will work out mechanisms for the IEC media awareness activities for the EPF component of the Scheme in respect of the establishments that can avail benefits under the Scheme.
k) EPFO will provide Management Information System (MIS) and other such analytical reports to the Ministry of Labour & Employment as are necessary for effective monitoring of the scheme. Third-Party Evaluation will also be undertaken on a periodic basis.
l) Linkages with NCS:
(i) PMRPY database to be accessible to NCS for analytics.
(ii) All EPF establishments to be able to log in to the NCS using their LIN.
(iii) All new employees can log in to NCS using UAN/Aadhaar.
(iv) All new vacancies covered under the PMRPY Scheme may be posted on the NCS after 01.12.2016.
(v) Current employment status of all new employees will be updated as "employed" on NCS.
***** PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 9 of 12
Annex-I PMRPY Scheme Implementation
Note: The Employer applying for the Scheme is required to fill up the following details Links to be provided to Shram Suvidha Portal for applying for a LIN.
1. Name of the Organisation: Data to be pulled from EPFO Database. Pre-filled field & Non-editable.
2. Registered Address of the Organisation: Data to be pulled from EPFO Database. Pre-filled field & Non-editable.
3. Organisation's Industry (as per NIC-2008): Data to be pulled from EPFO Database. Pre-filled field & Editable.
4. Organisation's Year of Incorporation: Data to be pulled from EPFO Database. Pre-filled field & Non-editable.
5. Organisation's PAN: User to enter PAN details. Pan Verified (One Time) gateway. Pre-filled field & Editable. Cross-checked by payment gateway. Pre-filled field & Editable.
6. IFSC Code: Cross-checked by payment gateway. Pre-filled field & Editable.
7. Bank Name: User to enter Details. To be Verified NCS.
8. PAN: User to enter Details. To be Verified NCS.
9. Date of Birth: User to enter Details. Contact Person's Mobile No.
10. Email: User to enter Details.
11. Employee Strength as on March 2016: Data to be pulled from March 2016 ECR. Pre-populated & Non-Editable.
12. Employee Strength as on Last Completed month: Data to be pulled from ECR of Last Completed month. Pre-populated & Non-Editable.
13. Current Month: Automatically Filled based on 3.67% EPF contribution - this triggers the system for PMRPY.
Regards,
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From India, Lucknow
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The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme is applicable to all establishments registered with the Employees' Provident Fund Organisation (EPFO). To avail benefits under the scheme, establishments must have added new employees to their workforce from August 2016 onwards. The scheme targets employees earning wages less than Rs 15,000 per month. For new establishments registered after April 1, 2016, all new employees are eligible to be covered under the scheme. The Government will pay the EPS contribution for eligible new employees for the next three years, provided they continue employment with the same employer. In the textile (apparel) sector, additional benefits apply, with the Government also covering the EPF contribution. Employers need to ensure accurate information submission to avoid penalties. The scheme will be operational until 2019-20, with the Government continuing to pay the EPS contribution for new eligible employees.
From India, Gurugram
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From India, Gurugram
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PMRPY Scheme Guidelines.pdf