Tag: Ministry of Labour & Employment

Cabinet approves extension of last date of Registration under Aatmanirbhar Bharat Rojgar Yojana (ABRY)

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has given its approval for extending the terminal date for registration of beneficiaries for availing the benefit under Aatmanirbhar Bharat Rojgar Yojana (ABRY) for another nine months i.e. from 30th June, 2021 to 31st March, 2022. Consequent upon this extension, it is expected that 71.8 lakh employment will be generated in the formal sector as against the earlier projection of 58.5 lakh. As on 18.06.2021, benefit amounting to Rs.902 crore has been given to 21.42 Lakh beneficiaries through 79,577 establishments under ABRY.

Estimated expenditure of the scheme including the expenditure for the proposed extended period of registration upto 31.03.2020 will be Rs.22,098 crore. This scheme is being implemented through the Employees Provident Fund Organization (EPFO) to reduce financial burden of the employers of various sectors/industries and to encourage them to hire more workers.

Under ABRY, establishments registered with EPFO and their new employees drawing monthly wage of less than Rs. 15,000/- are being benefited if the establishment recruits new employees or those who lost their job between 01.03.2020 to 30.09.2020. Under ABRY, Government of India is crediting for a period of two years both the employees’ and employers share’ (24% of wages) or only the employees’ share (12% of wages), depending on the strength of EPFO registered establishments. Detailed scheme guidelines can be seen on the website of Ministry of Labour & Employment and EPFO.

 ABRY was announced as one of the measures under Aatmanirbhar Bharat 3.0 package to boost the economy and increase employment generation in formal sector during post Covid recovery phase. This scheme will minimize the impact of COVID-19 pandemic on the country’s economy and will ameliorate the hardship faced by low paid workers, provide incentive to employers for restarting and expanding business activities.

 

EPFO members can now avail second non-refundable COVID-19 advance

As per PIB press release, EPFO has now allowed its members to avail second non-refundable COVID-19 advance. The provision for special withdrawal to meet the financial need of members during pandemic was introduced in March 2020, under Pradhan Mantri Garib Kalyan Yojana (PMGKY). An amendment to this effect was made by the Ministry of Labour & Employment in Employees’ Provident Funds Scheme, 1952 by inserting therein sub-para (3) under paragraph 68L, through notification in the Official Gazette.

Under this provision, non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to member’s credit in the EPF account, whichever is less, is provided. Members can apply for a lesser amount also.

The press release further states, during the second wave of Covid-19 pandemic, ‘mucormycosis’ or black fungus has been declared an epidemic recently. In such trying times, EPFO endeavours to lend a helping hand to its members by meeting their financial needs. Members who have already availed the first COVID-19 advance can now opt for a second advance also. The provision and process for withdrawal of the second COVID-19 advance is the same as in the case of the first advance.

Considering the urgent need of members for financial support in these trying times, it has been decided to accord top priority to COVID-19 claims. EPFO is committed to settle these claims within three days of their receipt. For this, EPFO has deployed a system driven auto-claim settlement process in respect of all such members whose KYC requirements are complete in all respects. Auto-mode of settlement enables EPF to reduce the claim settlement cycle to just 3 days as against the statutory requirement to settle the claims within 20 days.

Read more about Black Fungus or Mucormycosis here: https://taxconcept.net/covid-19/mucormycosis-a-fungal-complication-being-detected-in-covid-19-patients/