How to availing EPFO benefit under the PMRPY scheme

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What is PMRPY Scheme?

The Pradhan Mantri Rojgar Protsahan Yojana(PMRPY) Plan Scheme has been designed to incentivise employers for generation of new employment, where Government of India will be paying the full employer's contribution towards EPF & EPS both w.e.f 01.04.2018 (earlier benefit was applicable for employer's contribution towards EPS only) for the new employment.

Objective

• The employer is incentivised for increasing the employment base of workers in the establishment, and
• The other hand, a large number of workers will find jobs in such establishments. A direct benefit is that these workers will have access to social security benefits of the organized sector 
• Worker will have access to social security benefits of the organized sector.

Definition of New Employee : for the purposes of the scheme, A employee earning less than (and including) Rs. 15000 per month who was not working in any establishment registered with the EPFO in the past and did not have a Universal Account Number prior to 01st April, 2016. The Universal Account Number is to be Aadhaar seeded.

Scheme Eligibility:

• Establishments must be registered with the Employees’ Provident Fund Organisation (EPFO) and should also have a Labour Identification Number (LIN) allotted to them under the Shram Suvidha Portal (https://shramsuvidha.gov.in).
• Employer must have added new employees to avail benefit under the Scheme from August, 2016 onwards.
• For new establishment come into existence/getting registered with EPFO after 01st April, 2016, the reference base will be taken as Zero/NIL employees. Thus, the employer can avail of PMRPY benefits for all new eligible employees.
• The PMRPY scheme is targeted for employees earning wages less than Rs 15,000/- per month. Thus, new employees earning wages more than Rs 15,000/- per month will not be eligible.
• Government of India will pay the full employer's contribution (EPF and EPS both) as admissible from time to time w.e.f 01.04.2018 for a period of three years to  the new employees and to the existing beneficiaries for their remaining period  of three years through EPFO. 
• To avoid any penalty on the EPF/EPS contribution, the employer is advised to submit the PMRPY online form at the earliest, preferably by the 10th of the following month.
• The payment of 8.33% EPS and 3.67% EPF by the Government will be made after the employer has credited the 12% EPF contribution of the employees with EPFO.
• The Scheme will be in operation for a period of 3 years and the Government of India will continue to pay the 8.33% EPS contribution to be made by the employer for the next 3 years. That is, all new eligible employees will be covered under the PMRPY Scheme till 2019- 20.

Instructions for availing benefits under PMRPY scheme

PART A:

• Employers are to Login to the PMRPY portal (www.pmrpy.gov.in) using their LIN/EPFO registration ID 
• Enter the organisational details that are required as per the format including the Organisational PAN.
• The employment to be covered under the scheme would comprise new employment for workers earning wages less than Rs. 15,001/- per month. The description of the post (job role) for the new employment needs to be specified along with the date of joining and date of exit, if applicable.
• PMRPY form should be submitted by eligible employers at the end of each month, preferably by the 10th day of the following month.
• In case the employer does not submit the information on-line on the PMRPY form by 10th of the following month, he will not be eligible for availing benefits under the PMRPY Scheme for that month.

PART B: Eligibility Criteria

1. Eligibility Criteria for establishments for claiming benefit under the scheme:

• Establishment should be registered with EPFO under EPF Act 1952 and have a valid LIN
• In case the establishment does not have a Labour Identification Number (LIN), he may apply through the Shram Suvidha Portal (https://shramsuvidha.gov.in)
• Establishment should have a valid organisational PAN
• Establishment must have a valid Bank Account, the details of which are to be entered and through which payments may be made to the establishment.
• Establishment should have submitted their ECR for the month of March, 2016
• Establishment should have added new employees on or after 01.04.2016
• For new establishments registered after 01.04.2016, all new employees can be covered subject to para 2 below

2. Necessary conditions for eligibility of employees under PMRPY:

• New employee should have joined in the establishment on or after 01.04.2016 and should not have been a regular employee in any EPF registered establishment prior to this.
• Employer should ensure that the new employee has a valid UAN which is Aadhaar linked and issued after 01st April, 2016. In case it is not available, it may obtained from the EPFO website (http://www.epfindia.com/). The mobile number and other contact details are to be captured by EPFO.
• The monthly wages of the new employee should be less than Rs. 15,001
• The EPS contribution for the new employee will be available for 3 years.
• In case an establishment eligible for a scheme has a drop/fall in employment from the reference base, the establishment will not be eligible for the scheme in the months where employment is below this reference base.

3. Validation of new employees: 

• Employer will upload the ECR file as proposed in ECR 2.0
• ECR will be accompanied with an online certificate from the employer stating that the submission is claimed only in respect of new employees without past service and for newly created posts.

4. Start and continuation of Scheme: The PMRPY Scheme will become operational from the date of issue/approval of the Scheme Guidelines (i.e.9th August, 2016). The establishment will continue to update the PMRPY interface each month (latest by 10th of following month) so that the necessary EPS payment and EPF payment continues.

information source: Reference and more details click on link: https://pmrpy.gov.in/

more details on PMPRY: PMPRY Guidelines

This piece information is written for general information to my professional network; it is not a legal advice. I am not liable for any errors or omissions. For more clarification and details, you may write to me: rchougala@gmail.com