FM Nirmala Sitharaman offers perks to companies to boost employment

Finance Minister Nirmala Sitharaman on Thursday announced a new job creation scheme by giving subsidy to those establishments that make new hires. The subsidy would be to cover for retirement fund contributions by employees as well as employers for two years, she said.

Employees contribution (12 per cent of wages) and employer's contribution (12 per cent of wages) totalling 24 per cent of wages would be given to establishments for two years, she said.

Track live updates of Nirmala Sitharaman's press conference here

Under the Aatmanirbhar Bharat Rozgar Yojana, every Employees' Provident Fund Organisation (EPFO) registered establishment taking new employees would get this subsidy.

The scheme will cover any new employee joining employment in EPFO-registered establishment on monthly wages less than Rs 15,000 crore.

It would also cover EPF members drawing monthly wages of less than Rs 15,000, who made an exit from employment during Covid-19 pandemic from March 1, 2020, and is employed on or after October 1, 2020.

Also read — Economy witnessing strong recovery, says Finance Minister Nirmala Sitharaman

The scheme would cover establishments registered with EPFO if they add new employees compared to the reference base of employees as in September 2020.

The condition would be adding a minimum of two new employees for establishments with up to 50 employees. Those establishments with more than 50 employees, would have to give a minimum of five new jobs.

The scheme would be operational till June 30, 2021.