23-12-2023

AATMANIRBHAR BHARAT ROJGAR YOJANA (ABRY)

Why in the news?

 Recently, Aatmanirbhar Bharat Rojgar Yojana’ (ABRY), the Central government has disbursed over Rs 10,000 crores to more than 60 lakh beneficiaries through 1.52 lakh establishments.

Key Points

• The initiative was launched in October 2020 to incentivise employers to create new employment and restoration of loss of employment during Covid-19.
•  As of December 05, an amount of Rs.10,043.02 crore has been disbursed to 60.49 lakh beneficiaries.
• The scheme ensures the disbursements of benefits to specific eligibility criteria, met by beneficiary establishments and employees on a month-to-month basis.
• States like Tamil Nadu, Maharashtra, and Uttar Pradesh have the maximum number of beneficiaries and establishments.
• Notably, the scheme provides benefits in 194 different sectors like agriculture farms, automobile services, canteens, general insurance, marble mines, hospitals, and cattle feed industry among others.

About Aatmanirbhar Bharat Rojgar Yojana

• The scheme is designed to stimulate the creation of new job opportunities by extending financial support to employers of establishments registered with the Employees’ Provident Fund Organization.
• The crux of the scheme lies in incentivising employment of unemployed individuals, including those who lost their jobs due to Covid-19, by covering both the employee and employer contributions (24% of wages) for establishments with up to 1,000 employees. For establishments with over 1,000 employees, only the employee’s EPF contributions (12% of wages) are covered in respect of new employees.
• The outlay approved by the Government for the total period of scheme implementation i.e. from 2020 to 2023 is Rs. 22810 Crore.
• In August 2023, the government announced that ABRY has exceeded its initial employment generation goals, showcasing its success in fostering job creation and recovery during the Covid-19 pandemic.
• As of August 2023, a total of 1,52,380 establishments, employing 60,44,155 new employees and upon fulfilling all the eligibility conditions, have availed benefits amounting to a sum of Rs. 9,669.87 crore under the scheme.
• Under the ABRY scheme, the government will pay both the employee and employer’s share of provident fund contribution (12% each) for two years for new employees who join EPFO-registered establishments with a monthly wage less than Rs. 15,000. For establishments with more than 1,000 employees, only the employee’s share will be paid by the government.

Objective

• It aims to encourage employers to hire more workers and retain existing ones by reducing their financial burden of provident fund contribution.
• It aims to increase the formalization of the workforce by bringing more workers under the ambit of social security schemes administered by EPFO.
• It aims to provide income support and social protection to new employees who join formal employment during the Covid-19 recovery phase.
• Significance: It substantially contributed to the job market's revival, underscoring its role in boosting economic recovery during these challenging times

                                                       Source: Financial Express