Government of India will now contribute the Employer's full admissible PF contribution for the first three years from the date of registration of the new employee for all the sectors including existing beneficiaries for their remaining period of three years. This initiative is as per press note published by the Press Information Bureau dated 28th March 2018.
The scheme has a dual benefit i.e. on the one hand the employers are incentivized for increasing the employment base of workers in the establishments, and on 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.
In PMRPY scheme, which has been in operation since August, 2016, Government is paying the 8.33% contribution of Employers to the Employees' Pension Scheme (EPS) in respect of new employees (who have joined on or after 1st April 2016) having a new Universal Account Number (UAN), with salary up to Rs. 15,000/- per month.
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