The government hopes to create 1 crore new jobs by bearing the entire 12 percent of the basic salary that employers are mandated to make towards a pension for the first three years for new employees.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, yesterday approved payment for the entire 12 percent contribution for first three years for new staff.
“Our government is committed to creating jobs. The scheme which was implemented in 2016 had a provision for the government to pay for 8.33 percent of the pension contribution by employers.
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Since the launch of the scheme in August 2016, Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), as many as 30 lakh workers have already benefited, he said.
“We feel that the government’s decision will help create 1 crore new jobs, and we will increase budget provisioning by about Rs 6,500-Rs 10,000 crore under this scheme,” he said.
The government bears 8.33 per cent employers’ contribution to the Employees’ Pension Scheme (EPS) for new workers under PMRPY. Employees who have joined on or after 1st April 2016, having a new Universal Account Number (UAN) with salary up to Rs 15,000 per month, are covered under this scheme.
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