The Central Government's innovative employment incentive scheme, the Aatmanirbhar Bharat Rozgar Yojana (ABRY), has exceeded its initial employment generation goals, showcasing its success in fostering job creation and recovery during the COVID-19 pandemic.
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.