30 April, 2018
The Ministry of Labour and Employment, Government of India has issued a memorandum dated April 12, 2018 to amend the Pradhan Mantri Rojgar Protsahan Yojgana (PMRPY) to enhance the scope of the scheme (Amendment).
The PMRPY was introduced in August 2016 with a view to incentivise employers for generation of new employment.
Under the scheme, the Government was paying 8.33% of the employer’s contribution under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (EPF Act) for new employees for the first three years of their employment.
Pursuant to the Amendment, the Government shall now pay the entire employer’s share of contribution under the EPF Act for new employees and existing beneficiaries of the PMRPY for a period of three years from the date of registration under the scheme.
This change has been made with effect from April 1, 2018. The last date for registration of beneficiaries is March 31, 2019.
The EPF Act is a key social security legislation that provides end of service benefits to employees and requires that both employers and employees make contributions on a percentage the employees’ salary to the provident fund.
For further information, please contact:
Veena Gopalakrishnan, AZB & Partners
veena.gopalakrishnan@azbpartners.com
