Aatmanirbhar Bharat Rozgar Yojana

About Aatmanirbhar Bharat Rozgar Yojana: 

• It was launched in 2020.
• This was designed to stimulate the creation of new job opportunities by extending financial support to employers of establishments registered with the Employees' Provident Fund Organization (EPFO).
• This scheme aimed to incentivize employment of unemployed individuals, including those who lost their jobs due to the pandemic, by covering both the employee and employer contributions (24% of wages) for establishments with up to 1000 employees.
• For establishments with over 1000 employees, only the employee's EPF contributions (12% of wages) were covered in respect of new employees.
• As of July 31, 2023, the ABRY has already achieved an enrolment of over 7.58 million new employees, surpassing its initial employment generation target.
• Significance: It substantially contributed to the job market's revival, underscoring its role in boosting economic recovery during these challenging times.

Key facts about Employees' Provident Fund Organization

• It is a statutory body that came into existence under the Employees’ Provident Fund and Miscellaneous Provisions Act, of 1952.
• The Act and Schemes framed there under are administered by a tripartite Board known as the Central Board of Trustees, Employees' Provident Fund, consisting of representatives of Government (Both Central and State), Employers, and Employees.
• The Board administers a contributory provident fund, a pension scheme, and an insurance scheme for the workforce engaged in the organized sector in India.
• The Board is assisted by the Employees’ PF Organization (EPFO), consisting of offices at 122 locations across the country.
• The EPFO is under the administrative control of the Ministry of Labour and Employment, Government of India.

Q1) What is provident fund?

A provident fund is a financial savings scheme typically established by employers to help employees save money for their retirement or other long-term financial goals. These funds are often set up as part of an employment contract, and both the employer and the employee contribute a portion of the employee's salary to the fund on a regular basis.

Source: Aatmanirbhar Bharat Rozgar Yojana (ABRY) Surpasses Employment Generation Target