New Delhi, Apr 25 (KNN) In a move which would bring the informal sector workers under social safety net and held in job creation, the Government has notified full subsidisation of employers’ contribution to EPF for all new employees up to a period of three years.

The Cabinet Committee on Economic Affairs has approved the amendment in the guidelines of Pradhan Mantri Rojgar Protsahan Yojana in order to meet the full provident fund contribution employer makes for the first three years for new hires.

In a notification, Directorate General of Employment said, “The Government has decided to pay the full employers’ contribution (EPF and EPS) as admissible from time to time with effect from April 1, 2018 for a period of three years to the new employees and to the existing beneficiaries for their remaining period of three years through EPFO.”

The terminal date for registration of beneficiary through establishment is March 31, 2019, the notification added.

Last month, the CCEA approved modification to the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), enhancing the benefit for employers hiring new hands. The current scheme in operation since August, 2016 pays 8.33% contribution of Employers to the Employees’ Pension Scheme (EPS) in respect of new employees that have joined on April 1, 2016.

The government will now meet the entire 12% contribution employer makes towards retirement savings for the first three years from the date of registration of the of the new employee for all the sectors including existing beneficiaries for their remaining period of three years.

As a result of this, the informal sector workers would get social safety net and there would be more job creation.

Till now about 31 Lakhs beneficiaries have been added to the formal employment involving an expenditure of more than Rs. 500 crore. PMRPY has been in operation since August, 2016. (KNN Bureau)