Sub: Scheme Guidelines of Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).
Sir,
Enclosed please find herewith an O.M. No. DGE-U-130IS/I/2016-MP(G) dated 9111
August, 2016 received from the Ministry of Labour & Employment on the above subject.
2. Pradhan Mantri Ro_igar Protsahan Yojana is a scheme announced in the Union Budget
2016-17 to incentivise employers for generation of new employment, where Government of
India will be paying the 8.33% EPS contribution of the employer for the new employment.
3. It is requested that the scheme may be popularised amongst industry for their wider
participation and coverage. The scheme guidelines are enclosed. Kindly go through the guidelines and let us know it is applicable to all or only new establishment or textile industry only. As we have not heard any news from PF deptt.
Encl. as above.
No. DGE-U-13015/1/2016-MP (G)
Government of India
Ministry of Labour & Employment
Directorate General of Employment
3/10, Jam Nagar House,
Shahjahan Road,
New Delhi-110011
Dated: 09.08.2016
OFFICE MEMORANDUM
Subject: Scheme Guidelines for Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).
J\-Q l_ 1
') r SQ_) ,
\.. 2. The Scheme will be operational with effect from 09thAugust, 2016, i.e. date of issue
of this OM. EPFO will make necessary arrangements for the software development for
implementation of the PMRPYScheme.
The undersigned is directed to enclose herewith the guidelines on Pradhan Mantri
Rojgar Protsahan Yojana (PMRPY), a scheme to incentivise employers registered with the
Employees' Provident Fund Organisation (EPFO)for job creation by the Government paying
the 8.33% contribution of employers to the Employee Pension Scheme (EPS)in respect of
new employees having a new Universal Account Number (UAN). For the textile (apparel)
sector, the Government will also be paying the 3.67% Employees Provident Fund (EPF)
contribution of the eligible employer for these new employees. The Scheme may be
popularised amongst industry for wider participation and coverage.
Ene!: as above
~'
(Dr. Shikha Anand)
Director (Employment)
Tel. Fax. 23386737
1. Finance Secretary& Secretary Expenditure, Ministry of Finance, North Block, New
Delhi - 110001
2. Secretary, Ministry of Textiles, Udyog Bhawan, New Delhi - 110011
3. Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce &
Industry, Udyog Bhawan, New Delhi -110011
4. Secretary, Ministry of Micro, Small and Medium Enterprises, Udyog Bhawan, New
Delhi -110011
5. Secretary, Ministry of Skills Development & Entrepreneurship, Shivavji Stadium, New
Delhi - 110001
6. Secretary, Ministry of Corporate Affairs, Shastri Bhawan, New Delhi - 110001
7. CEO,NITI Aayog, Sansad Marg, New Delhi-1100D1
8. 05D, Ministry of Labour & Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi
- 110119
,~ri SN Tripathi, Development Commissioner, MSME, Ministry of Commerce &
Industry, Nirman Bhawan, New Delhi - 110108
10. Smt. Sunita Sanghi, Adviser, NITI Ayog, Sansad Marg, New Delhi-110001
11. Dr. V.P. Joy, Central Provident Fund Commissioner, Employees' Provident Fund
Organisation (EPFO), EPFO Head Office, Bhavishya Nidhi Bhawan, 14, BhikaijiCama
Place, New Delhi -110066.
12 Shri Arunish Chawla, Joint Secretary, Plan Finance-II, Department of Expenditure,
Ministry of Finance, North Block, New Delhi-ll0GOl.
13. Ms Sunaina Tomar, Joint Secretary, Ministry of Textiles,Udyog Bhawan, New Delhi-
110001.
Internal
14. Sh PP Mitra, Principal Labour & Employment Adviser, MoLE, Shram Shakti Bhawan,
Rafi Marg, New Delhi.
15. Shri HeeralalSamariya, Additional Secretary, MoLE, Shram Shakti Bhawan, Rafi Marg,
New Delhi ..
16. Smt. Meenakshi Gupta, JS&FA,MoLE, Shram Shakti Bhawan, Rafi Marg, New Delhi.
17. Shri Manish Gupta, Joint Secretary, MoL&E, Shram Shakti Bhawan, New Delhi.
18. DG ESIC, Chief Labour Commissioner, JS (RA), JS (RKG), DG FASLI, DGMS, DG LB,
DGLW, CBWE,DDG(C), EA,Addl CPFC(IS)- EPFO.
19. NIC - for uploading on the websites of MoL&E, EPFOetc.
Ministry of Labour & Employment
Pradhan Mantri Rojgar Protsahan Yojana:
A Scheme to promote/incentivise employment generation
SCHEME GUIDELINES
A. Introduction
India has a significant advantage of a young population and a declining dependency
ratio, offering huge potential for a demographic dividend. There are, however, challenges
which need to be addressed for fully reaping this unique dividend in the fast changing global
scenario. In the last decade, the growth of economy at an annual rate of 7 to 8% was
accompanied by a low growth in jobs. The proportion of persons in the labour force
declined from 43% in 2004-05 to 39.5% in 2011-12, with a sharp drop in female participation
rate from 29% to 21.9%. Although the overall unemployment rate is at 2.2%, the
unemployment rates for youth in the age group 15 to 29 years and particularly those
possessing secondary level of education and above, are higher. More than 52% of the
workers are self-employed and a significant proportion of women workers are primarily
home based.
2. As per the Sixth Economic Census (2013), around 58.5 million establishments were
inoperation of which 59.48% were in rural areas and 40.52% in urban areas. Further, about
77.6% establishments (45.36 million) were engaged innon-agricultural activities. These
establishments employ around 131.29 million persons, of which 51.71% were employed in
rural areas and 55.71% were working in establishments having at least one hired worker.
Thus, there is a significant potential for employment in these establishments, especially
those covered under the Employees' Provident Fund Organisation (EPFO).
3. In the Budget Speech 2016-17, it was stated that "In order to incentivize creation of
new jobs in the formal sector, Government of India will pay the Employee Pension Scheme
contribution of 8.33% for all new employees enrolling in EPFOfor the first three years of their
employment. This will incentivize th~ employers to recruit unemployed persons and also to
bring into the books the informal employees. In order to channelize this intervention towards
the target group of semi-skilled and unskilled workers, the scheme will be applicable to those
PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 1of 12
with salary up to Rs15,000 per month.1 have made a budget provision of Rs 1,000 crore for
this scheme."
B. Scheme Objectives
4. 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 8.33% EPScontribution of the employer for the new employment.
This scheme has a dual benefit, where, on the one hand, the employer is incentivised for
increasing the employment base of workers in the establishment, 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.
C. Definitions
5. The definitions mentioned in The Employees' Provident Fund Scheme, 1952, Section
2 would be applicable mutatis mutandis to the PMRPY scheme as well. The following
definitions would also be relevant:
•
(a) Electronic Challan cum Return (ECR)are the monthly challans/returns submitted
online to the EPFOby the employers/establishments.
(b) Universal Account Number (UAN) are the unique account number issued by the
EPFOto the employees. For the purpose of the PMRPYScheme, the UANs need
to be Aadhaar seeded and verified.
(c) PMRPY Reference Base: For the PMRPY Scheme, the reference base is taken
from the ECRreturn filed by the employer/establishment as on 31st March, 2016
and is the number of employees against whom the employer has deposited/filed
the employer's contribution of 12%(3.67% EPF+ 8.33% EPS)ofwages with EPFO.
Similarly for 2017-18, the reference base will be taken as 31st March, 2017 and so
on in subsequent years.
In case of new establishments getting reg!s.~~m~yJi~hEPFOafter 015t April, 2016,
the reference base would be taken as Zero/NIL and all new employees would be vr s
entitled to be covered under the Scheme, subject to other eligibility conditions.
PMRPYScheme Guidelines 1.0(F) (09.08.2016) Page 2 of 12
(d) National Industrial Classification Code (NIC) - 2008 is the code developed and
maintained by Ministry of Statistics & Programme Implementation for
codification and categorisation of industries based on their economic activity.
(e) New Employee, for the purposes of the scheme, is an employee earning less
than 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
01 st April, 2016.
D. Scheme Eligibility
6. All establishments registered with Employees' Provident Fund Organisation (EPFO)
can apply for availing benefits under the scheme subject to the following conditions:
if
(a) Establishments registered with the Employees' Provident Fund Organisation
(EPFO) should also have a Labour Identification Number (LIN) allotted to them
under the Shram Suvidha Portal (nttDs:/i3hramsu'/idha.;;o\l.in). The LIN will be
the primary reference number for all communication to be made under the
PMRPY Scheme.
(b) The eligible employer must have added new employees to the reference base of
workers in order to avail benefits under the Scheme from August, 2016 onwards.
The reference base of workers will be determined by the number of employees
against whom the employer has deposited the 12% (3.67% EPF + 8.33% EPS) with
EPFO as on 31st March, 2016, as ascertained/verified from the monthly EeR for
March, 2016. For example, an establishment, say M/s ABC Ltd. had filed an ECR
for the employers' contribution for 45 employees/workers in March, 2016. In the
month of April, 2016, the establishment has added, say, 15 new workers bringing
the total of employees to 60, the employer will be eligible to apply for the
PMRPY scheme benefits for these 15 new employees. The employer will not be
h o-:gt?, ':
eligible to avail of pNfRP{!:l'enefits if there is no new employment vis-a-vis the
. ;.",/_IiH\_
reference base in a'ny'subsequent month. The new employee, as mentioned in
,
para 5(e) above, is one that had not worked in any EPFO registered
PMRPY Scheme Guidelines 1.0{F) (09.08.2016) Page 3 of 12
establishment or had a Universal Account Number, in the past, i.e. prior to oi''
April, 2016
(c) For new establishment coming into existence/getting registered with EPFO after
01'\ 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.
(d) The PMRPY scheme is targeted for employees earning wages less than Rs
15,OOO/- per month. Thus, new employees earning wages more than Rs 15,OOO/per
month will not be eligible. A new employee is one who has not been working
in an EPFQ registered establishment on a regular basis prior to oi'' April, 2016
and will be determined by the allocation of a new Aadhaar seeded Universal
Account Number (UAN) on or after 01.04.2016. In case the new employee does
not have a new UAN, the employer will facilitate this through the EPFO portal.
(e) The employers will continue to get the 8,33% contribution paid by the
Government for these eligible new employees for the next 3 years, provided they
continue in employment by the same employer. The 8.33% contribution will be
paid by GOI after the employer has remitted the 3.67% EPF contribution for
these new employees each month. 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 io" of the following month.
In the case of the textile (apparel) sector, the employers are also eligible to get
the 3.67% EPF contribution paid by the Government as mentioned in the PMRPY
on-line form. This benefit can be availed of by the textile (apparel) sector
establishments dealing with the Manufacture of wearing apparel, in particular
NIC Codes 1410 and 1430. The Government, in this case, will also pay the EPF
contribution of 3.67% in addition to paying the EPScontribution of 8.33%.
PMRPYScheme Guidelines 1.0(F) (09.08.2016)
Page 4 of 12
The payment of 8.33% EPSand 3.67% EPF by the Government will be made after
the employer has credited the 12% EPF contribution of the employees with
EPFO.
The industry sector/sub-sectors covered by this component are the following NIC
Codes:
(1) NIC 1410: Manufacture of wearing apparel, except fur apparel
a. NIC 14101: Manufacture of all types of textile garments and clothing
accessories
b. NIC 14102: Manufacture of rain coats of waterproof textile fabrics or
plastic sheetings
c. NIC 14105:
d. NIC 14109:
Custom tailoring
Manufacture of wearing apparel not elsewhere classified
(2) NIC 1430: Manufacture of knitted and crocheted apparel
a. NIC 14301: Manufacture of knitted or crocheted wearing apparel and
other made-up articles directly into shape (pullovers,
cardigans, jerseys, waistcoats and similar articles)
b. NIC 14309: Manufacture of other knitted and crocheted apparel
including hosiery
(f) Employers/Establishments applying for the Scheme shall be fully responsible for
the information uploaded. If at any time, it is found that the information
submitted is incorrect or false, it will be assumed that the EPSpayment(and EPF
payment for textile sector) has not been made for these employees. The
employer will then be liable for dues and penalties as already specified under the
relevant provisions of The Employees' Provident Fund Scheme, 1952.
7. 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.
8. The Governmentwill make available the necessary funds for the Scheme to EPFO in
advance for payment of 8.33% EPS contribution and the 3.67% EPF contributionfor the
textile (apparel) sector on a regular basis based on the estimates of funds projected by
PMRPYScheme Guidelines 1.0(F) (09.08.2016) Page 5 of 12
EPFO.EPFO will provide Management Information System (MIS) and other such analytical
reports to the Ministry as are necessary for effective monitoring of the scheme. Third Party
Evaluation will also be undertaken on a periodic basis. An elaborate IEC media and
awareness campaign will be put in place for effective propagation of the PMRPY Scheme.
*********
Appendix
Instructions for availing benefits under PMRPYscheme (8.33% EPScontribution)
The PMRPY scheme aims to incentivise employers for employment generation by the
Government paying the employers' EPScontribution of 8.33%,for the new employees, for
the first three years of their employment and is proposed to be made applicable for
unemployed persons that are semi-skilled and unskilled.
PARTA:
a) Employers are to Login to the PMRPY portal (W'NW amro'! :rol/.in) using their
LlN/EPFO registration 10 (Format as at Annex-I)
b) Enter the organisational details that are required as per the format including the
Organisational PAN. It is necessary to mention the nature of industry/sectoras
per National Industrial Classification Code NIC-2008, maintained by the Ministry
of Statistics & Programme Implementation.
The appropriate NIC code is determined/ assessed by the value added by
production of different products and services or net revenue derived from
various activities, i.e. the industry code of the primary manufactured product
(output) of that establishment. In case of multi-product establishments, the
appropriate NIC code is determined by the category of the product contributing
the maximum value added for the establishment. Where such assessment is not
possible, classification may be done in terms of gross revenue attributed to the
products, or services of the establishments, the number of persons employed for
various activities.
c) For the textile (apparel) sector dealing with the Manufacture of wearing apparel,
in particular, NIC 1410 (Manufacture of wearing apparel, except fur apparel); and
NIC 1430 (Manufacture of knitted and crocheted apparel), the Government will
also pay the EPF contribution of 3.67%, ~:ln-,-·additionto payment of the EPS
contribution of 8.33%.The detailed sub-sectors covered for this component are
given below:
(1) NIC 1410: Manufacture of wearing apparel, except fur apparel
PMRPY Scheme Guidelines 1.0(F} (09.08.2016) Page 6 of 12
a. NIC 14101: Manufacture of all types of textile garments and clothing
accessories
b. NIC 14102: Manufacture of rain coats of waterproof textile fabrics or
plastic sheetings
c. NIC 14105: Custom tailoring
d. NIC 14109: Manufacture of wearing apparel not elsewhere classified
(2) NJC 1430: Manufacture of knitted and crocheted apparel
a. NIC 14301: Manufacture of knitted or crocheted wearing- apparel and
other made-up articles directly into shape (pullovers,
cardigans, jerseys, waistcoats and similar articles)
b. NIC 14309: Manufacture of other knitted and crocheted apparel
including hosiery
. l
d) The employment to be covered under the scheme would comprise new
employment for workers earning wages less than Rs. 15,000/- 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.
e) PMRPY form should be submitted by eligible employers at the end of each
month, preferably by the 10thday of the following month .
.~) In case the employer does not submit the information on-line on the PMRPY
form by io" of the following month, he will not be eligible for availing benefits
under the PMRPY Scheme for that month.
g) The submission of the form will be determined by the employer having paid the
3.67% EPF contribution in respect of these new employees.
PART B: Eligibility Criteria
1. Eligibility Criteria for establishments for claiming benefit under the scheme:
a) Establishment should be registered with EPFO under EPF Act 1952 and have a
valid LIN
b) In case the establishment does not have a Labour Identification Number (LIN), he
may apply through the Shram Suvidha Portal(https:/ /shramsuvidha.gov.in)
c) Establishment should have a valid organisational PAN
d) 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.
e) Establishment should have submitted their ECRfor the month of March, 2016
f) Establishment should have increased the number of employees on or after
01.04.2016
g) For new establishmeflts::f.egistered after 01.04.2016, all new employees can be
covered subject to,p.arCl:? below.
-. ,
2. Necessary conditions for eligibility of employees under PMRPY:
PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 7 of 12
...._ --_-.---,,_~"- ... ""_ .. _.._----------_
a) New employee should have joined in the establishment (refer l(e) above) on or
after 01.04.2016 and should not have been a regular employee in any EPF
registered establishment prior to this.
b) Employer should ensure that the new employee has a valid UAN which is
Aadhaar linked. In case it is not available, it may obtained from the EPFO website
(http//ww·N.eofindia.com/). The mobile number and other contact details are to
be captured by EPFO.
c) The monthly wages of the new employee should be less than Rs. 15,000
d) The EPScontribution for the new employee will be available for 3 years.
e) 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 thisreference base.
3. Validation of new employees:
a) Employer will upload the ECRfile as proposed in ECR 2.0
b) 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.gthAug, 2016). The
establishment will continue to update the PMRPY interface each month (latest by
io" of following month) so that the necessary EPS payment and EPF pavrnentjfor
Textile (Apparel) Sector} continues.
a) The PAN and LIN of the establishment will be validated
b) The details of the new employee (as submitted by the employer in the ECR) will
be validated from the UAN database
c) UAN seeded with Aadhaar number would be validated in UIDAI/EPFO database
for verification and deduplication
d) The bank details (account no., IFSC code etc.) of the employer will be checked by
the banking gateway by EPFO.
e) After due verification, the system will compute the amount due for that
establishment against the verified new employee
f) Based on the information provided by the establishmentand having been
verified, the remittance made for the 3.67% EPF contribution against these new
eligible employees will trigger release ofthe 8.33% EPS contribution. This will be
drawn from the PMRPY pool towards theEPS account for a period of 3 years for
the new employee.
g) In the case of the textile (apparel) sector, the 3.67% EPF contribution will be- paid
to EPFO on submission of the ECR and PMRPY form.
PART C: Process flow (for use by MoLE, EPFO and Ministry of Textiles)
PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 8 of 12
h) EPFO will need to work out an elaborate monitoring system for tracking of
employee movement.
i) EPFO will undertake creation of IEC content, media plan and execution in an
integrated manner so that the awareness of the PMRPY Scheme can be
popularised amongst eligible employers.
j) The Ministry of Textiles will work out mechanisms for the IEC media awareness
activities for the EPF component of the Scheme in respect of the establishments
that can avail benefits under the Scheme.
k) EPFO will provide Management Information System (MIS) and other such
analytical reports to the Ministry of Labour & Employment as are necessary for
effective monitoring of the scheme. Third Party Evaluation will also be
undertaken on a periodic basis.
I) Linkages with NCS:
(i) PMRPY database to be accessible to NCS for analytics
(ii) All EPF establishments to be able to login to the NCS using their LIN
(iii) All new employees can login to NCS using UAN/ Aadhaar
(iv) All new vacancies covered under the PMRPY Scheme may be posted on
the NCS after 01.12.2016.
(v) Current employment status of all new employees will be updated as
"employed" on NCS.
*****
PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 9 of 12
Annex-I
PMRPYScheme Implementation
Note: The Employer applying for the Scheme is required to fill up the following details
Links to be provided to Shram
Suvidha Portal for applying for a
LIN
2 Name of the Data to be pulled from EPFO
Organisation Database.
Pre-filled field & Non-editable.
3 Registered Address of Data to be pulled from EPFO
the Organisation Database.
Pre-filled field & Non-editable.
4 Organisation's Industry Data to be pulled from EPFO
(as per NIC-2008) Database.
Pre-filled field & Editable.
5 Organisation's Year of Data to be pulled from EPFO
Incorporation Database.
Pre-filled field & Non-editable.
6 Organisation's PAN User to enter PAN details
Pan Verified(One Time)
gateway.
Pre-filled field & Editable.
Cross checked by payment
gateway.
Pre-filled field & Editable.
9 IFSCCode
Cross checked by payment
gateway.
Pre-filled field & Editable.
10 Bank Name
PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 10 of 12
~.,
User to enter Details
To be Verified NCS
3 PAN User to enter Details
To be Verified NCS
4 DaB User to enter Details
Contact Person's Mobile
No.
5 User to enter Details
Email
Employee
Strength as on
Data to be pulled from March 2016 ECR.
Pre-populated & Non-Editable
2 Employee
Strength as on
Last Completed
month
Data to be pulled from ECRof Last
Completed month
Pre-populated & Non-Editable
3 Current Month Automatically Filled based on 3.67% EPF
contribution - this triggers the system
for PMRPY
PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 11 of 12
If
Yours
From India, Lucknow
13Sir,
Enclosed please find herewith an O.M. No. DGE-U-130IS/I/2016-MP(G) dated 9111
August, 2016 received from the Ministry of Labour & Employment on the above subject.
2. Pradhan Mantri Ro_igar Protsahan Yojana is a scheme announced in the Union Budget
2016-17 to incentivise employers for generation of new employment, where Government of
India will be paying the 8.33% EPS contribution of the employer for the new employment.
3. It is requested that the scheme may be popularised amongst industry for their wider
participation and coverage. The scheme guidelines are enclosed. Kindly go through the guidelines and let us know it is applicable to all or only new establishment or textile industry only. As we have not heard any news from PF deptt.
Encl. as above.
No. DGE-U-13015/1/2016-MP (G)
Government of India
Ministry of Labour & Employment
Directorate General of Employment
3/10, Jam Nagar House,
Shahjahan Road,
New Delhi-110011
Dated: 09.08.2016
OFFICE MEMORANDUM
Subject: Scheme Guidelines for Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).
J\-Q l_ 1
') r SQ_) ,
\.. 2. The Scheme will be operational with effect from 09thAugust, 2016, i.e. date of issue
of this OM. EPFO will make necessary arrangements for the software development for
implementation of the PMRPYScheme.
The undersigned is directed to enclose herewith the guidelines on Pradhan Mantri
Rojgar Protsahan Yojana (PMRPY), a scheme to incentivise employers registered with the
Employees' Provident Fund Organisation (EPFO)for job creation by the Government paying
the 8.33% contribution of employers to the Employee Pension Scheme (EPS)in respect of
new employees having a new Universal Account Number (UAN). For the textile (apparel)
sector, the Government will also be paying the 3.67% Employees Provident Fund (EPF)
contribution of the eligible employer for these new employees. The Scheme may be
popularised amongst industry for wider participation and coverage.
Ene!: as above
~'
(Dr. Shikha Anand)
Director (Employment)
Tel. Fax. 23386737
1. Finance Secretary& Secretary Expenditure, Ministry of Finance, North Block, New
Delhi - 110001
2. Secretary, Ministry of Textiles, Udyog Bhawan, New Delhi - 110011
3. Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce &
Industry, Udyog Bhawan, New Delhi -110011
4. Secretary, Ministry of Micro, Small and Medium Enterprises, Udyog Bhawan, New
Delhi -110011
5. Secretary, Ministry of Skills Development & Entrepreneurship, Shivavji Stadium, New
Delhi - 110001
6. Secretary, Ministry of Corporate Affairs, Shastri Bhawan, New Delhi - 110001
7. CEO,NITI Aayog, Sansad Marg, New Delhi-1100D1
8. 05D, Ministry of Labour & Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi
- 110119
,~ri SN Tripathi, Development Commissioner, MSME, Ministry of Commerce &
Industry, Nirman Bhawan, New Delhi - 110108
10. Smt. Sunita Sanghi, Adviser, NITI Ayog, Sansad Marg, New Delhi-110001
11. Dr. V.P. Joy, Central Provident Fund Commissioner, Employees' Provident Fund
Organisation (EPFO), EPFO Head Office, Bhavishya Nidhi Bhawan, 14, BhikaijiCama
Place, New Delhi -110066.
12 Shri Arunish Chawla, Joint Secretary, Plan Finance-II, Department of Expenditure,
Ministry of Finance, North Block, New Delhi-ll0GOl.
13. Ms Sunaina Tomar, Joint Secretary, Ministry of Textiles,Udyog Bhawan, New Delhi-
110001.
Internal
14. Sh PP Mitra, Principal Labour & Employment Adviser, MoLE, Shram Shakti Bhawan,
Rafi Marg, New Delhi.
15. Shri HeeralalSamariya, Additional Secretary, MoLE, Shram Shakti Bhawan, Rafi Marg,
New Delhi ..
16. Smt. Meenakshi Gupta, JS&FA,MoLE, Shram Shakti Bhawan, Rafi Marg, New Delhi.
17. Shri Manish Gupta, Joint Secretary, MoL&E, Shram Shakti Bhawan, New Delhi.
18. DG ESIC, Chief Labour Commissioner, JS (RA), JS (RKG), DG FASLI, DGMS, DG LB,
DGLW, CBWE,DDG(C), EA,Addl CPFC(IS)- EPFO.
19. NIC - for uploading on the websites of MoL&E, EPFOetc.
Ministry of Labour & Employment
Pradhan Mantri Rojgar Protsahan Yojana:
A Scheme to promote/incentivise employment generation
SCHEME GUIDELINES
A. Introduction
India has a significant advantage of a young population and a declining dependency
ratio, offering huge potential for a demographic dividend. There are, however, challenges
which need to be addressed for fully reaping this unique dividend in the fast changing global
scenario. In the last decade, the growth of economy at an annual rate of 7 to 8% was
accompanied by a low growth in jobs. The proportion of persons in the labour force
declined from 43% in 2004-05 to 39.5% in 2011-12, with a sharp drop in female participation
rate from 29% to 21.9%. Although the overall unemployment rate is at 2.2%, the
unemployment rates for youth in the age group 15 to 29 years and particularly those
possessing secondary level of education and above, are higher. More than 52% of the
workers are self-employed and a significant proportion of women workers are primarily
home based.
2. As per the Sixth Economic Census (2013), around 58.5 million establishments were
inoperation of which 59.48% were in rural areas and 40.52% in urban areas. Further, about
77.6% establishments (45.36 million) were engaged innon-agricultural activities. These
establishments employ around 131.29 million persons, of which 51.71% were employed in
rural areas and 55.71% were working in establishments having at least one hired worker.
Thus, there is a significant potential for employment in these establishments, especially
those covered under the Employees' Provident Fund Organisation (EPFO).
3. In the Budget Speech 2016-17, it was stated that "In order to incentivize creation of
new jobs in the formal sector, Government of India will pay the Employee Pension Scheme
contribution of 8.33% for all new employees enrolling in EPFOfor the first three years of their
employment. This will incentivize th~ employers to recruit unemployed persons and also to
bring into the books the informal employees. In order to channelize this intervention towards
the target group of semi-skilled and unskilled workers, the scheme will be applicable to those
PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 1of 12
with salary up to Rs15,000 per month.1 have made a budget provision of Rs 1,000 crore for
this scheme."
B. Scheme Objectives
4. 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 8.33% EPScontribution of the employer for the new employment.
This scheme has a dual benefit, where, on the one hand, the employer is incentivised for
increasing the employment base of workers in the establishment, 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.
C. Definitions
5. The definitions mentioned in The Employees' Provident Fund Scheme, 1952, Section
2 would be applicable mutatis mutandis to the PMRPY scheme as well. The following
definitions would also be relevant:
•
(a) Electronic Challan cum Return (ECR)are the monthly challans/returns submitted
online to the EPFOby the employers/establishments.
(b) Universal Account Number (UAN) are the unique account number issued by the
EPFOto the employees. For the purpose of the PMRPYScheme, the UANs need
to be Aadhaar seeded and verified.
(c) PMRPY Reference Base: For the PMRPY Scheme, the reference base is taken
from the ECRreturn filed by the employer/establishment as on 31st March, 2016
and is the number of employees against whom the employer has deposited/filed
the employer's contribution of 12%(3.67% EPF+ 8.33% EPS)ofwages with EPFO.
Similarly for 2017-18, the reference base will be taken as 31st March, 2017 and so
on in subsequent years.
In case of new establishments getting reg!s.~~m~yJi~hEPFOafter 015t April, 2016,
the reference base would be taken as Zero/NIL and all new employees would be vr s
entitled to be covered under the Scheme, subject to other eligibility conditions.
PMRPYScheme Guidelines 1.0(F) (09.08.2016) Page 2 of 12
(d) National Industrial Classification Code (NIC) - 2008 is the code developed and
maintained by Ministry of Statistics & Programme Implementation for
codification and categorisation of industries based on their economic activity.
(e) New Employee, for the purposes of the scheme, is an employee earning less
than 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
01 st April, 2016.
D. Scheme Eligibility
6. All establishments registered with Employees' Provident Fund Organisation (EPFO)
can apply for availing benefits under the scheme subject to the following conditions:
if
(a) Establishments registered with the Employees' Provident Fund Organisation
(EPFO) should also have a Labour Identification Number (LIN) allotted to them
under the Shram Suvidha Portal (nttDs:/i3hramsu'/idha.;;o\l.in). The LIN will be
the primary reference number for all communication to be made under the
PMRPY Scheme.
(b) The eligible employer must have added new employees to the reference base of
workers in order to avail benefits under the Scheme from August, 2016 onwards.
The reference base of workers will be determined by the number of employees
against whom the employer has deposited the 12% (3.67% EPF + 8.33% EPS) with
EPFO as on 31st March, 2016, as ascertained/verified from the monthly EeR for
March, 2016. For example, an establishment, say M/s ABC Ltd. had filed an ECR
for the employers' contribution for 45 employees/workers in March, 2016. In the
month of April, 2016, the establishment has added, say, 15 new workers bringing
the total of employees to 60, the employer will be eligible to apply for the
PMRPY scheme benefits for these 15 new employees. The employer will not be
h o-:gt?, ':
eligible to avail of pNfRP{!:l'enefits if there is no new employment vis-a-vis the
. ;.",/_IiH\_
reference base in a'ny'subsequent month. The new employee, as mentioned in
,
para 5(e) above, is one that had not worked in any EPFO registered
PMRPY Scheme Guidelines 1.0{F) (09.08.2016) Page 3 of 12
establishment or had a Universal Account Number, in the past, i.e. prior to oi''
April, 2016
(c) For new establishment coming into existence/getting registered with EPFO after
01'\ 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.
(d) The PMRPY scheme is targeted for employees earning wages less than Rs
15,OOO/- per month. Thus, new employees earning wages more than Rs 15,OOO/per
month will not be eligible. A new employee is one who has not been working
in an EPFQ registered establishment on a regular basis prior to oi'' April, 2016
and will be determined by the allocation of a new Aadhaar seeded Universal
Account Number (UAN) on or after 01.04.2016. In case the new employee does
not have a new UAN, the employer will facilitate this through the EPFO portal.
(e) The employers will continue to get the 8,33% contribution paid by the
Government for these eligible new employees for the next 3 years, provided they
continue in employment by the same employer. The 8.33% contribution will be
paid by GOI after the employer has remitted the 3.67% EPF contribution for
these new employees each month. 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 io" of the following month.
In the case of the textile (apparel) sector, the employers are also eligible to get
the 3.67% EPF contribution paid by the Government as mentioned in the PMRPY
on-line form. This benefit can be availed of by the textile (apparel) sector
establishments dealing with the Manufacture of wearing apparel, in particular
NIC Codes 1410 and 1430. The Government, in this case, will also pay the EPF
contribution of 3.67% in addition to paying the EPScontribution of 8.33%.
PMRPYScheme Guidelines 1.0(F) (09.08.2016)
Page 4 of 12
The payment of 8.33% EPSand 3.67% EPF by the Government will be made after
the employer has credited the 12% EPF contribution of the employees with
EPFO.
The industry sector/sub-sectors covered by this component are the following NIC
Codes:
(1) NIC 1410: Manufacture of wearing apparel, except fur apparel
a. NIC 14101: Manufacture of all types of textile garments and clothing
accessories
b. NIC 14102: Manufacture of rain coats of waterproof textile fabrics or
plastic sheetings
c. NIC 14105:
d. NIC 14109:
Custom tailoring
Manufacture of wearing apparel not elsewhere classified
(2) NIC 1430: Manufacture of knitted and crocheted apparel
a. NIC 14301: Manufacture of knitted or crocheted wearing apparel and
other made-up articles directly into shape (pullovers,
cardigans, jerseys, waistcoats and similar articles)
b. NIC 14309: Manufacture of other knitted and crocheted apparel
including hosiery
(f) Employers/Establishments applying for the Scheme shall be fully responsible for
the information uploaded. If at any time, it is found that the information
submitted is incorrect or false, it will be assumed that the EPSpayment(and EPF
payment for textile sector) has not been made for these employees. The
employer will then be liable for dues and penalties as already specified under the
relevant provisions of The Employees' Provident Fund Scheme, 1952.
7. 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.
8. The Governmentwill make available the necessary funds for the Scheme to EPFO in
advance for payment of 8.33% EPS contribution and the 3.67% EPF contributionfor the
textile (apparel) sector on a regular basis based on the estimates of funds projected by
PMRPYScheme Guidelines 1.0(F) (09.08.2016) Page 5 of 12
EPFO.EPFO will provide Management Information System (MIS) and other such analytical
reports to the Ministry as are necessary for effective monitoring of the scheme. Third Party
Evaluation will also be undertaken on a periodic basis. An elaborate IEC media and
awareness campaign will be put in place for effective propagation of the PMRPY Scheme.
*********
Appendix
Instructions for availing benefits under PMRPYscheme (8.33% EPScontribution)
The PMRPY scheme aims to incentivise employers for employment generation by the
Government paying the employers' EPScontribution of 8.33%,for the new employees, for
the first three years of their employment and is proposed to be made applicable for
unemployed persons that are semi-skilled and unskilled.
PARTA:
a) Employers are to Login to the PMRPY portal (W'NW amro'! :rol/.in) using their
LlN/EPFO registration 10 (Format as at Annex-I)
b) Enter the organisational details that are required as per the format including the
Organisational PAN. It is necessary to mention the nature of industry/sectoras
per National Industrial Classification Code NIC-2008, maintained by the Ministry
of Statistics & Programme Implementation.
The appropriate NIC code is determined/ assessed by the value added by
production of different products and services or net revenue derived from
various activities, i.e. the industry code of the primary manufactured product
(output) of that establishment. In case of multi-product establishments, the
appropriate NIC code is determined by the category of the product contributing
the maximum value added for the establishment. Where such assessment is not
possible, classification may be done in terms of gross revenue attributed to the
products, or services of the establishments, the number of persons employed for
various activities.
c) For the textile (apparel) sector dealing with the Manufacture of wearing apparel,
in particular, NIC 1410 (Manufacture of wearing apparel, except fur apparel); and
NIC 1430 (Manufacture of knitted and crocheted apparel), the Government will
also pay the EPF contribution of 3.67%, ~:ln-,-·additionto payment of the EPS
contribution of 8.33%.The detailed sub-sectors covered for this component are
given below:
(1) NIC 1410: Manufacture of wearing apparel, except fur apparel
PMRPY Scheme Guidelines 1.0(F} (09.08.2016) Page 6 of 12
a. NIC 14101: Manufacture of all types of textile garments and clothing
accessories
b. NIC 14102: Manufacture of rain coats of waterproof textile fabrics or
plastic sheetings
c. NIC 14105: Custom tailoring
d. NIC 14109: Manufacture of wearing apparel not elsewhere classified
(2) NJC 1430: Manufacture of knitted and crocheted apparel
a. NIC 14301: Manufacture of knitted or crocheted wearing- apparel and
other made-up articles directly into shape (pullovers,
cardigans, jerseys, waistcoats and similar articles)
b. NIC 14309: Manufacture of other knitted and crocheted apparel
including hosiery
. l
d) The employment to be covered under the scheme would comprise new
employment for workers earning wages less than Rs. 15,000/- 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.
e) PMRPY form should be submitted by eligible employers at the end of each
month, preferably by the 10thday of the following month .
.~) In case the employer does not submit the information on-line on the PMRPY
form by io" of the following month, he will not be eligible for availing benefits
under the PMRPY Scheme for that month.
g) The submission of the form will be determined by the employer having paid the
3.67% EPF contribution in respect of these new employees.
PART B: Eligibility Criteria
1. Eligibility Criteria for establishments for claiming benefit under the scheme:
a) Establishment should be registered with EPFO under EPF Act 1952 and have a
valid LIN
b) In case the establishment does not have a Labour Identification Number (LIN), he
may apply through the Shram Suvidha Portal(https:/ /shramsuvidha.gov.in)
c) Establishment should have a valid organisational PAN
d) 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.
e) Establishment should have submitted their ECRfor the month of March, 2016
f) Establishment should have increased the number of employees on or after
01.04.2016
g) For new establishmeflts::f.egistered after 01.04.2016, all new employees can be
covered subject to,p.arCl:? below.
-. ,
2. Necessary conditions for eligibility of employees under PMRPY:
PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 7 of 12
...._ --_-.---,,_~"- ... ""_ .. _.._----------_
a) New employee should have joined in the establishment (refer l(e) above) on or
after 01.04.2016 and should not have been a regular employee in any EPF
registered establishment prior to this.
b) Employer should ensure that the new employee has a valid UAN which is
Aadhaar linked. In case it is not available, it may obtained from the EPFO website
(http//ww·N.eofindia.com/). The mobile number and other contact details are to
be captured by EPFO.
c) The monthly wages of the new employee should be less than Rs. 15,000
d) The EPScontribution for the new employee will be available for 3 years.
e) 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 thisreference base.
3. Validation of new employees:
a) Employer will upload the ECRfile as proposed in ECR 2.0
b) 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.gthAug, 2016). The
establishment will continue to update the PMRPY interface each month (latest by
io" of following month) so that the necessary EPS payment and EPF pavrnentjfor
Textile (Apparel) Sector} continues.
a) The PAN and LIN of the establishment will be validated
b) The details of the new employee (as submitted by the employer in the ECR) will
be validated from the UAN database
c) UAN seeded with Aadhaar number would be validated in UIDAI/EPFO database
for verification and deduplication
d) The bank details (account no., IFSC code etc.) of the employer will be checked by
the banking gateway by EPFO.
e) After due verification, the system will compute the amount due for that
establishment against the verified new employee
f) Based on the information provided by the establishmentand having been
verified, the remittance made for the 3.67% EPF contribution against these new
eligible employees will trigger release ofthe 8.33% EPS contribution. This will be
drawn from the PMRPY pool towards theEPS account for a period of 3 years for
the new employee.
g) In the case of the textile (apparel) sector, the 3.67% EPF contribution will be- paid
to EPFO on submission of the ECR and PMRPY form.
PART C: Process flow (for use by MoLE, EPFO and Ministry of Textiles)
PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 8 of 12
h) EPFO will need to work out an elaborate monitoring system for tracking of
employee movement.
i) EPFO will undertake creation of IEC content, media plan and execution in an
integrated manner so that the awareness of the PMRPY Scheme can be
popularised amongst eligible employers.
j) The Ministry of Textiles will work out mechanisms for the IEC media awareness
activities for the EPF component of the Scheme in respect of the establishments
that can avail benefits under the Scheme.
k) EPFO will provide Management Information System (MIS) and other such
analytical reports to the Ministry of Labour & Employment as are necessary for
effective monitoring of the scheme. Third Party Evaluation will also be
undertaken on a periodic basis.
I) Linkages with NCS:
(i) PMRPY database to be accessible to NCS for analytics
(ii) All EPF establishments to be able to login to the NCS using their LIN
(iii) All new employees can login to NCS using UAN/ Aadhaar
(iv) All new vacancies covered under the PMRPY Scheme may be posted on
the NCS after 01.12.2016.
(v) Current employment status of all new employees will be updated as
"employed" on NCS.
*****
PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 9 of 12
Annex-I
PMRPYScheme Implementation
Note: The Employer applying for the Scheme is required to fill up the following details
Links to be provided to Shram
Suvidha Portal for applying for a
LIN
2 Name of the Data to be pulled from EPFO
Organisation Database.
Pre-filled field & Non-editable.
3 Registered Address of Data to be pulled from EPFO
the Organisation Database.
Pre-filled field & Non-editable.
4 Organisation's Industry Data to be pulled from EPFO
(as per NIC-2008) Database.
Pre-filled field & Editable.
5 Organisation's Year of Data to be pulled from EPFO
Incorporation Database.
Pre-filled field & Non-editable.
6 Organisation's PAN User to enter PAN details
Pan Verified(One Time)
gateway.
Pre-filled field & Editable.
Cross checked by payment
gateway.
Pre-filled field & Editable.
9 IFSCCode
Cross checked by payment
gateway.
Pre-filled field & Editable.
10 Bank Name
PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 10 of 12
~.,
User to enter Details
To be Verified NCS
3 PAN User to enter Details
To be Verified NCS
4 DaB User to enter Details
Contact Person's Mobile
No.
5 User to enter Details
Employee
Strength as on
Data to be pulled from March 2016 ECR.
Pre-populated & Non-Editable
2 Employee
Strength as on
Last Completed
month
Data to be pulled from ECRof Last
Completed month
Pre-populated & Non-Editable
3 Current Month Automatically Filled based on 3.67% EPF
contribution - this triggers the system
for PMRPY
PMRPY Scheme Guidelines 1.0(F) (09.08.2016) Page 11 of 12
If
Yours
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