With unemployment rates peaking as high as 8.7%, an incentivised model for providing employment to partially skilled or unskilled workers can prove to be a major breakthrough. To curb unemployment in India, the government has launched various schemes. Pradhan Mantri Rojgar Protsahan Yojna is one such incentive based scheme to lure the youth of India and ultimately bring down the unemployment rates. 

The Pradhan Mantri Rojgar Protsahan Yojna is a flagship scheme implemented by the Ministry of Labour & Employment. It was launched on one April 2018 to make the people of India self-reliant and empowered.

This article deals with important information regarding the scheme. It’s benefits, objectives, eligibility criteria, documents required and application process.

 

Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

Name of the scheme	Prime Minister Employment Promotion Scheme
who launched it	Indian government
Beneficiaries	Citizens of India
Objective	Generating employment opportunities
official website	https://pmrpy.gov.in/
Year	2023
Government’s contribution	8.33% in EPS and 3.67% in EPF
when did you launch	1 April 2018

 

About Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

Pradhanmantri rojgar protsahan Yojana or the Pradhan Mantri Employment Incentive Scheme is an insective waste scheme started to encourage the youth to start working. Under the scheme the government pays the employer an Employee Pension Scheme share of 8.33% & an Employees’ Provident Fund of 3.67% for the first 3 years of the job. There are double benefits linked with the scheme since the employer will get incentivised under the scheme while employment opportunities will also be generated.

The primary implementer of this scheme is the Ministry of Labour. It has been operational since August 2016 with workers earning wages less than ₹15000 as targets & generating employment in Small & Medium Enterprises and Micro Business to avail benefits of this scheme.

The scheme not only generates employment opportunities but also ensures social security of employed workers. The objective of the scheme is to generate employment opportunities and encourage employers to generate new employment by incentivizing them. The motive of the scheme is also to make the people of the country self-reliant thereby improving the economy. This can also prove to be a step towards empowerment.

 

Benefits of PMRPY

• Generation of new employment opportunities.
• Incentive given by paying 8.33% EPS and 3.67% EPF to the employees appointed by the government. 
• The benefits of the scheme can be availed by new employees.
• Social security of workers ensured.
• Unemployment rate will decline. 
• Step towards self-reliance.
• Country is economy will improve.

 

Salient Features of Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) offers a compelling set of benefits to incentivize employers and boost job creation in India. Here’s a breakdown of its key features:

• Boosting Job Creation: Launched in 2016, PMRPY is a government initiative that specifically targets employers by encouraging them to create new jobs.

• Financial Incentive: The scheme significantly reduces the employer’s financial burden for new hires. The government covers the employer’s contribution (12% of the employee’s salary) towards both the Employee’s Provident Fund (EPF) and Employee Pension Scheme (EPS) for the first three years.

• Open to All Registered Employers: Any employer registered with the Employees’ Provident Fund Organisation (EPFO) can participate in PMRPY, making it widely accessible.

• Extended Eligibility: The scheme offers benefits for a period of three years, with the option for renewal for an additional three years, providing long-term support to new employees.

• Simplified Administration: PMRPY is designed for ease of implementation and administration, minimizing bureaucratic hurdles for employers interested in participating.

• Inclusive Approach: The scheme benefits employees across various sectors, promoting job growth across the Indian economy.

Eligibility criteria of PMRPY

The scheme is available to all the establishments that are registered with the Employees’ Provident Fund Organisation. The conditions that need to be met to avail the benefits of the Pradhan Mantri Rojgar Protsahan Yojna are : 

 

• Only workers that earn wages less than ₹15000 per month are eligible to see the benefits of the scheme. 
• A new beneficiary should not have been working regularly in an EFPO registered organization prior to 1 April 2024.
• If a new employee does not have a Universal Account Number (UAN), he/she can get one through the EPFO portal.
• The business must be registered with EPFO and have a Labour Identification Number(LIN) that can be acquired under the Shram Suvidha Portal. LIN serves as the primary reference number for all official communications.
• Employers eligible for the scheme should add new employees to the workers reference base to make use of the benefits under the scheme.

 

Criteria	Employer	Employee
Registered with EPFO	Yes	–
Valid Labour Identification Number (LIN)	Yes	–
Valid Permanent Account Number (PAN)	Yes	–
Valid Bank Account	Yes	–
Increased Employees Since April 1, 2016	Yes	–
Employed Before April 1, 2016	–	No
Monthly Salary ≤ ₹15,000	–	Yes
Valid Universal Account Number (UAN)	–	Yes

 

How to claim benefits for Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

 

 To claim the benefits of PMRPY 

• The establishment must be registered under the EPF act of 1952 and EPFO with a valid LIN 
• Company or business should have a valid bank account through which the payments would be made to the establishment. 
• The number of employees of the establishment must increase on and after 1 April 2016.
• Employers who want to avail benefits can visit the PMRPY official website and login with their LIN/EPFO registration ID. 
• The employer is supposed to fill the mandate details including organizational PAN, nature of the industry or sector as per the classification by National Industrial Classification Code NIC-2008 maintained by the Ministry of statistics and program implementation. 
• The scheme involves employment of workers at wages less than ₹15000 per month with job roll and post of the employee with the date of employment, joining, and exit mentioned.

 

How to apply for Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

To apply for Pradhan Mantri Rojgar protsahan Yojana: 

• Visit the official website of PMRPY.
• On the homepage click on the link to apply.
• An application form will open in front of you. 
• Fill the required information.
• Attach documents as suggested 
• Click on the submit button.
• Your application is registered 

 

Documents Required for Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

The important documents required while applying for the scheme are : 

• Aadhar card 
• LIN Number 
• Ration card 
• Birth certificate 
• Address proof 
• Passport size photograph 
• Mobile number 
• Income certificate 

 

FAQs

Ques: Does the scheme apply for all employees?

Ans: No, the scheme is only applicable for new employees. 

Ques: What does the government contribute in PMRPY? 

Ans: The government pays the EPS contribution of 8.33% for all new employees for a time period of 3 years from employment.

Ques: Is there a salary limit to avail the benefits of PMRPY? 

Ans: Yes, PMRPY came is applicable only for employees drawing a salary of up to ₹15000 per month.