The Atmanirbhar Bharat Rozgar Yojana (ABRY) is a flagship scheme under the Atmanirbhar Bharat Package 3.0, aimed at fostering employment generation in the formal sector and incentivizing the creation of new job opportunities. This scheme was introduced during the post-COVID-19 recovery phase to address the challenges of unemployment caused by the pandemic. Operational between 2020 and 2023, ABRY has been a vital component of India’s economic revival strategy.
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Objectives and Scope of ABRY
The primary goal of the scheme is to provide financial support to employers to encourage them to hire new employees and retain the existing workforce. By reducing the financial burden on employers through direct incentives, the scheme seeks to stimulate employment and strengthen the formal workforce. The benefits of this scheme extend to both employers and employees, ensuring a balanced approach to economic recovery.
The scheme specifically targets two categories of beneficiaries:
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1. New Employees
Employees drawing a monthly wage of less than ₹15,000 are eligible for benefits under ABRY if:
They were not employed in any establishment registered with the Employees’ Provident Fund Organization (EPFO) and did not possess a Universal Account Number (UAN) prior to October 1, 2020.
They joined employment in any EPFO-registered establishment on or after October 1, 2020, and before March 31, 2022.
They were allotted Aadhaar-validated UANs.
2. Rehired Employees
Employees who were already EPF members and held UANs but lost their jobs during the pandemic (March 1, 2020, to September 30, 2020) are eligible if they:
Rejoined employment in any EPFO-registered establishment between October 1, 2020, and March 31, 2022.
Possess Aadhaar-validated UANs.
The incentive is directly credited to the UANs of eligible employees by the Central Government.
Validity Period of the Scheme
The scheme has a well-defined timeline for implementation and benefits distribution:
1. Registration Period
The registration of eligible employers and new employees commenced on October 1, 2020, and concluded on March 31, 2022.
2. Incentive Disbursement Period
The payment of incentives in the form of EPF contributions is valid for a period of 24 wage months from the date of registration of the new employees.
Eligibility Criteria for Establishments
Establishments registered with the EPFO are eligible for ABRY benefits if they meet specific criteria:
For Establishments with 50 or Fewer Employees
They must add a minimum of two new employees compared to their reference base as of September 2020.
For Establishments with More Than 50 Employees
They must add at least five new employees compared to their reference base as of September 2020.
This eligibility requirement ensures that the scheme promotes substantial job creation across various organizational sizes.
Benefits of the Scheme
The scheme provides significant financial support to employers to facilitate employment generation:
1. Establishments with Up to 1,000 Employees
The Government of India subsidizes:
12% of the employee’s EPF contribution.
12% of the employer’s EPF contribution.
This totals 24% of the wages of new employees for a period of two years.
2. Establishments with More Than 1,000 Employees
The Government subsidizes:
12% of the employee’s EPF contribution.
The subsidy is credited directly to the Aadhaar-seeded EPFO accounts (UAN) of eligible employees, ensuring a seamless transfer of benefits.
Implementation and Procedural Guidelines
To implement ABRY effectively, the EPFO has developed an electronic system on its Employer’s Portal. Employers must follow these steps to avail the scheme’s benefits:
1. Registration and Documentation
Employers are required to update Form 5A and disclose the reference base of employees through a dedicated link available on the EPFO Unified Portal.
Employers must obtain declarations from employees regarding their previous EPFO membership before registering them as “new employees” under ABRY.
2. Filing Monthly Returns
Employers must submit a monthly Electronic Challan-cum-Return (ECR) for all employees, including the new employees registered under ABRY, within 60 days of the end of the wage month.
Any delay in submission results in the liability of interest under Section 7Q of the EPF Act.
3. Restrictions and Responsibilities
Employers cannot deduct the employee’s share of the EPF contribution from the monthly wages of new employees. Wages must be disbursed without such deductions.
Establishments functioning as contractors providing manpower to one or more principal employers are prohibited from claiming the employer’s share if the benefit is already claimed by the principal employer.
4. Accuracy and Accountability
Employers and establishments are responsible for ensuring the accuracy of all particulars submitted for claiming ABRY benefits.
No revisions or corrections in the ECR are allowed for claiming enhanced benefits at a later date.
Challenges Addressed by ABRY
The scheme addresses several critical challenges faced by the Indian economy during the pandemic:
Unemployment: By incentivizing employers, the scheme directly tackles the issue of job loss and encourages workforce expansion.
Formalization of Employment: The requirement of Aadhaar-validated UANs ensures that new employees are formally registered, contributing to an organized workforce.
Economic Revival: The scheme boosts economic activity by encouraging businesses to expand and hire more employees.
Broader Impact of ABRY
The Atmanirbhar Bharat Rozgar Yojana has far-reaching implications for India’s labor market and economic structure:
Boost to Small and Medium Enterprises (SMEs)
By subsidizing the EPF contributions of employees in smaller establishments, the scheme supports SMEs, which form the backbone of India’s economy.
Increased Social Security Coverage
With a larger number of employees formally registered under EPFO, the scheme enhances social security coverage, ensuring long-term benefits for workers.
Encouragement of Women’s Participation
By reducing financial barriers for employers, the scheme indirectly promotes greater gender diversity in the workforce.
Data-Driven Implementation
The use of Aadhaar for UAN validation and electronic systems for registration and benefit disbursement ensures transparency and minimizes fraudulent claims.
Conclusion
The Atmanirbhar Bharat Rozgar Yojana is a forward-looking initiative that addresses the twin challenges of unemployment and economic slowdown caused by the pandemic. By providing financial incentives to employers, the scheme not only encourages job creation but also strengthens India’s formal employment framework. The scheme’s emphasis on transparency, accountability, and social security makes it a robust model for economic recovery and growth. Its successful implementation lays the foundation for a more resilient and inclusive labor market in the years to come.
