Introduction

The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) was launched by the Ministry of Labour and Employment, Government of India, in August 2016. The scheme aimed to boost employment generation by incentivizing employers to hire more workers in the formal sector.

Under PMRPY, the government provided financial support to employers by paying the full contribution of the Employees’ Provident Fund (EPF) and Employees’ Pension Scheme (EPS) for new employees for a specific period. This initiative not only helped in reducing the financial burden on employers but also encouraged the formalization of the workforce, ensuring job security and social benefits for employees.

This article explores the objectives, benefits, eligibility criteria, implementation process, impact, and challenges of the PMRPY scheme.

Objectives of PMRPY

The main objectives of the Pradhan Mantri Rojgar Protsahan Yojana were:

✅ Encouraging employment generation by providing financial incentives to employers.
✅ Formalizing the workforce by bringing more workers under EPF & EPS coverage.
✅ Reducing employer costs for hiring new employees.
✅ Boosting job creation in the organized sector.
✅ Enhancing social security benefits for workers.

The scheme played a crucial role in reducing unemployment and increasing the social security coverage of workers, leading to a more structured and stable workforce in India.

Key Features of PMRPY

1. Government Contribution to EPF & EPS

  • The government paid the full 12% EPF & EPS contribution of employers for new employees for up to 3 years.
  • Initially, the scheme covered only the EPS contribution (8.33%), but from April 2018, it was expanded to cover the full 12% (EPF + EPS) contribution.

2. Support for New Employment

  • The scheme was applicable only for new employees earning up to ₹15,000 per month.
  • Employees who had not been a member of EPF before were eligible.

3. Sector-Wide Applicability

  • PMRPY was open to all sectors, including manufacturing, services, MSMEs, and large enterprises.
  • Employers across industries could benefit from the scheme.

4. Integration with EPFO & Digital Tracking

  • The scheme was implemented through the Employees’ Provident Fund Organisation (EPFO).
  • Employers had to register new employees digitally on the Unified Portal of EPFO.

5. Fixed Duration for Benefits

  • The benefit was applicable for 3 years from the date of joining of the new employee.
  • The scheme was available till March 31, 2019, and was later discontinued.

Eligibility Criteria for PMRPY

For Employers:

✅ Must be registered with EPFO (Employees’ Provident Fund Organisation).
✅ Must have a valid Labour Identification Number (LIN) on the Shram Suvidha Portal.
✅ Must be compliant with EPFO norms and regular in filing returns.
✅ Should not have been blacklisted or debarred by the government.

For Employees:

✅ Must be a new employee earning a monthly wage of ₹15,000 or less.
✅ Should not have been previously registered with EPFO.
✅ Must be hired on or after August 1, 2016.
✅ The job must be in a registered establishment under EPFO.

Implementation Process of PMRPY

The implementation of PMRPY was structured and digitalized to ensure transparency and efficiency.

Step-by-Step Registration Process

For Employers:

🔹 Step 1: Register on the EPFO Unified Portal (https://unifiedportal-emp.epfindia.gov.in).
🔹 Step 2: Link the organization’s Labour Identification Number (LIN) from the Shram Suvidha Portal.
🔹 Step 3: Add details of new employees hired under the scheme.
🔹 Step 4: Verify employee details and submit the PMRPY claim form online.
🔹 Step 5: Once verified, the government reimburses the employer's EPF contribution directly.

Benefits of PMRPY

For Employers:

✅ Lower hiring costs, as the government covered 12% EPF contribution.
✅ Encouraged business expansion by making employment affordable.
✅ Digitized and hassle-free process for availing benefits.

For Employees:

✅ Job security with EPF and pension benefits.
✅ Inclusion in the formal economy, ensuring better wages and working conditions.
✅ Financial stability through retirement savings under EPF & EPS.

For the Economy:

✅ Boosted employment rates, especially in MSMEs and labor-intensive sectors.
✅ Encouraged social security coverage, reducing informal employment.
✅ Supported economic growth by enhancing workforce participation.

Impact of PMRPY

Since its launch in 2016, PMRPY had a significant impact on employment generation in India:

📌 More than 1.21 crore employees benefited from the scheme.
📌 Over 1.52 lakh establishments availed the benefits.
📌 Led to a formalization of the workforce, increasing EPFO registrations.
📌 Contributed to growth in organized sector employment.

PMRPY successfully encouraged businesses to hire more workers without financial burden, leading to higher job creation and enhanced social security coverage.

Challenges and Limitations of PMRPY

While PMRPY was highly successful, it faced certain challenges and limitations:

❌ Limited Awareness: Many small businesses and MSMEs were unaware of the scheme.
❌ Complex Registration Process: Employers faced difficulties in linking LIN and EPF accounts.
❌ Short-Term Benefits: The scheme ended in March 2019, making its impact temporary.
❌ Limited to New Employees: The scheme did not benefit existing employees or rehires.

Government’s Response and Successor Scheme

After PMRPY ended in 2019, the government launched Aatmanirbhar Bharat Rozgar Yojana (ABRY) in 2020 to continue employment generation efforts post-pandemic. ABRY covered 24% of EPF contributions for new hires and supported businesses affected by COVID-19.

Conclusion

The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) played a crucial role in boosting employment generation in India. By covering the EPF & EPS contributions of new employees, the scheme:

✅ Encouraged formal employment and social security coverage.
✅ Helped businesses expand their workforce affordably.
✅ Supported economic growth and financial inclusion.

Although the scheme ended in 2019, it set a strong foundation for future employment policies. The government continues to promote job creation and workforce formalization through initiatives like Aatmanirbhar Bharat Rozgar Yojana (ABRY) and other employment-linked schemes.

📢 For more information on EPFO schemes, visit:
🔗 https://unifiedportal-emp.epfindia.gov.in

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