EPFO: FM Sitharaman extends employers' incentives till 31 March 2022; move aims at enabling firms to hire more

The Narendra Modi government has extended the incentivises to employers for the creation of new employment and restoration of loss of employment through the Employees’ Provident Fund Organisation (EPFO). The 'Atmanirbhar Bharat Rozgar Yojana' Launched on 1 October 2020, has now been extended till 31 March 2022, Finance Minister Nirmala Sitharaman today announced during a press conference. 

The scheme was to end on 30 June 2021. The extension has been made in the wake of second wave of the Coronavirus pandemic.

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The Atmanirbhar Bharat Rozgar Yojana will reduce the financial burden of the employers of various sectors, including MSME, and will allow them to hire more workers, Sitharaman said. 

"Benefit of Rs 902 crore given to 21.42 lakh beneficiaries of 79,577 establishments till June 18, 2021" Sitharaman said.

This will also provide subsidies for two years from registration for new employees drawing monthly wages less than Rs 15,000 for:

1) Both Employer's and Employee's share of contribution (total 24 per cent of wages) for establishment strength up to 1000 employees

2) Only Employee's share (12 per cent wages) in case of establishment strength of more than 1,000.

The Ministry has also approved an outlay of Rs 22,810 crore for 58.50 lakh estimated beneficiaries. The last date for registration is June 30, 2021.

The announcements were among the 8 such relief measures which also included credit guarantee schemes for 25 lakh persons via the Micro Finance Institutions (MFIs), additional Rs 23,220 cr for Public Health, additional subsidy on fertlisers and schemes on malnutrition and increasing farmers income.