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The wage subsidy program incentivizes almost 33 lakh to create new jobs in the formal sectors

The wage subsidy program incentivizes almost 33 lakh to create jobs in the formal sector - (A)

The union government wage subsidy program created almost 33 lakhs of new jobs in the formal sector last year, including almost 11.5 lakhs of workers in the July-September quarter of the current fiscal year (FY22).

Of the nearly 33 lakh recipients, at least 28.8 lakh are new employees, the remaining 4.18 lakh are workers who lost or quit their jobs after the pandemic outbreak, but after October 2020, the date on After the program went into effect, they have been reinstated by their employers. . collected on official data from the Ministry of Union Labor

To date, 100,000 companies have benefited from this wage subsidy system through the EPF.

The Atmanirbhar Bharat Rozgar Yojana or ABRY was announced in November 2020 (as of October 2020) to encourage employers to offer a job despite being at the lower end of the pay structure. Depending on the program, the union government pays or pays the EPF on behalf of workers and employers to hire or reinstate employees who lost their jobs after the pandemic, with a salary threshold of 15,000 rupees per month.

According to the Labor Ministry, the union government had already contributed Rs 1,845,300 crore at the end of September, and at least 106,000 companies benefited from the scheme in September.

From June 19 to September 30, the Union government’s contribution almost doubled and the number of beneficiaries increased by almost 12 lakh. In the same period, more than 26,000 other companies have joined the EPF scholarship.

The union government pays and pays 24% of the EPF dues – 12% each of the workers and employers – of this category of workers who enter work during this period for two years from the date of affiliation. The salary subsidy benefits everyone who joins and joins between October 1, 2020 and March 31, 2022. This applies to all companies with up to 1,000 employees. In companies with more than 1,000 employees, the union government subsidizes only 12% of the employee participation of the EPF.

An employee pays 12% of his base salary each month plus part of certain allowances for the mandatory EPF deduction. The employer pays a corresponding amount. The subsidy of this part of the salary by the State means a direct saving of salary costs for an employer and a somewhat better remuneration for people formally employed with low wages.



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