The Union Cabinet, chaired by the PM Narendra Modi, today gave its approval for Atmanirbhar Bharat Rojgar Yojana (ABRY) to boost employment in formal sector and incentivise creation of new employment opportunities during the COVID-19 recovery phase under Atmanirbhar Bharat Package 3.0.

The Cabinet has approved an expenditure of Rs. 1,584 crore for the current financial year and Rs. 22,810 crore for the entire scheme period, that is, 2020-2023.

Government will provide subsidy for 2 years in respect of new employees engaged on or after 1 October 2020 and up to 30 June 2021.

It will pay both 12 per cent employees’ contribution and 12 per cent employers’ contribution, that is, 24 per cent of wages towards EPF in respect of new employees in establishments employing up to 1,000 employees for 2 years.

While employing more than 1,000 employees for 2 years, Government will pay only employees’ share of EPF contribution, that is, 12 per cent of wages in respect of new employees in establishments.

Thanking Government for this initiative, Raja M. Shanmugham, Tirupur Exporter’s Association (TEA), said the scheme is beneficial to Tirupur exporting units as these units are now providing employment to new employees. He was also concerned about the increasing attrition rate.