Launched as part of the Aatmanirbhar Bharat package, the Atmanirbhar Bharat Rojgar Yojana (ABRY) aimed to incentivize job creation and economic recovery during the COVID-19 pandemic. This article explores the scheme’s objectives, benefits, eligibility, and its impact on the Indian job market.
Introduction
The Covid-19 pandemic significantly impacted the Indian economy, leading to job losses and economic hardship. To counter these challenges, the Government of India launched the Aatmanirbhar Bharat Abhiyan (Self-reliant India Mission). As part of this initiative, the Atmanirbhar Bharat Rojgar Yojana (ABRY) was introduced in October 2020.
Atmanirbhar Bharat Rojgar Yojana (ABRY) is a flagship initiative by the Government of India aimed at promoting self-reliance and creating employment opportunities for the youth of the country. Launched as part of the Atmanirbhar Bharat Abhiyan, this scheme focuses on incentivizing job creation and formalization of the economy. In this article, we will delve into the details of ABRY, its objectives, benefits, eligibility criteria, and how it is contributing to the growth of the Indian economy.
Objectives of ABRY
The ABRY scheme was designed with the following primary objectives:
- Incentivize Job Creation: By offering financial support to employers, ABRY aimed to encourage them to hire new employees, particularly those who lost jobs during the pandemic.
- Promote Social Security Benefits: The scheme ensured that newly hired employees were registered with the Employees’ Provident Fund Organization (EPFO), providing them with social security benefits like provident fund and pension.
- Support Economic Recovery: Increased job creation and social security benefits were expected to stimulate consumer spending and economic activity.
Benefits of ABRY
The ABRY scheme offered significant benefits to both employers and employees:
- Employers: The government provided a subsidy on the employer’s and employee’s contribution (up to 12% each) to the EPF for a period of two years. This reduced the financial burden on businesses, making it easier for them to hire new staff.
- Employees: Newly hired employees gained formal employment with social security benefits, contributing to their financial security and well-being.
Eligibility for ABRY
Several eligibility criteria determined whether an employer or employee could benefit from the ABRY scheme:
- Employers: Establishments registered with the EPFO on or before September 30, 2020, were eligible.
- Employees: New recruits with a monthly salary less than Rs. 15,000 who were not previously registered with the EPFO before October 1, 2020, were considered. The scheme also included those who lost their jobs during the pandemic and were re-employed under ABRY.
How does Atmanirbhar Bharat Rojgar Yojana (ABRY) work
The Atmanirbhar Bharat Rojgar Yojana (ABRY) is a scheme designed to incentivize employers to create new employment opportunities, provide social security benefits, and restore jobs lost during the COVID-19 pandemic. Here is how ABRY works based on the information from the provided sources:
- Implementation through EPFO: ABRY is implemented through the Employees’ Provident Fund Organisation (EPFO). It aims to reduce the financial burden on employers, especially in sectors like MSMEs, and encourage them to hire more workers.
- Financial Support: Under ABRY, the Government of India bears both the employees’ share (12% of wages) and employers’ share (12% of wages) of EPFO contributions or only the employees’ share, depending on the employment strength of the EPFO registered establishments.
- Duration and Registration: The scheme commenced on October 1, 2020, and was open for registration of eligible employers and new employees until June 30, 2021. The government provides the subsidy for two years from the date of registration.
- Financial Outlay: The total outlay approved by the government for the entire scheme implementation period from 2020 to 2023 is Rs. 22,810 Crore.
- Amount Reimbursed: As of the latest available data, an amount of Rs. 10,188.50 Crore has been reimbursed under ABRY, benefiting 1,52,517 establishments and 60.49 lakh new employees.
- Extension and Guidelines: The scheme has been extended, as indicated in a press release on June 30, 2021. Detailed guidelines and documents related to ABRY are available on the EPFO website for further reference
Implementation and Impact of ABRY
The ABRY scheme was implemented through the EPFO. Employers could register online and avail the benefits for eligible new hires. While the initial registration deadline was June 2021, it was extended to March 2022 due to the pandemic’s second wave.
Impact Analysis
ABRY played a crucial role in supporting job creation during the pandemic’s economic downturn. As of March 2022, over 1.12 crore establishments had benefitted from the scheme, leading to the creation of over 36.6 lakh new jobs. Additionally, over 4.5 lakh individuals who lost jobs during the pandemic were re-employed under ABRY.
Challenges and Limitations
Despite its positive impact, the ABRY scheme faced some challenges:
- Limited Reach: The scheme primarily benefitted formal sector establishments registered with the EPFO. The informal sector, which employs a significant portion of the Indian workforce, remained largely unaffected.
- Focus on New Hires: While re-employment was included, the scheme primarily incentivized the creation of new jobs rather than focusing on bringing back those who lost jobs during the pandemic.
Conclusion
The Atmanirbhar Bharat Rojgar Yojana (ABRY) served as a vital initiative in fostering job creation and economic recovery during the Covid-19 pandemic. The scheme provided much-needed financial support to businesses and ensured social security benefits for newly hired employees. While challenges remain in fully addressing job losses and reaching the informal sector, ABRY’s success demonstrates the potential of government intervention in promoting employment opportunities.
FAQs
What is the full form of ABRY?
ABRY stands for Atmanirbhar Bharat Rojgar Yojana (Self-reliant India Employment Scheme).
Who is eligible for the ABRY scheme?
Employers registered with the EPFO before September 30, 2020, and new employees with a monthly salary less than Rs. 15,000 who were not previously registered with the EPFO before October 1, 2020, are eligible. The scheme also included those who lost their jobs during the pandemic and were re-employed under ABRY.
What are the benefits of ABRY for employers?
Employers receive a subsidy on the employer’s and employee’s contribution (up to 12% each) to the EPF for a period of two years. This reduces the financial burden of hiring new staff.
What are the benefits of ABRY for employees?
Newly hired employees gain formal employment with social security benefits like provident fund and pension, contributing to their financial security and well-being.
How was ABRY implemented?
The scheme was implemented through the EPFO. Employers could register online and avail the benefits for eligible new hires.
What was the impact of ABRY?
As of March 2022, ABRY has played a significant role in creating over 36.6 lakh new jobs and re-employing over 4.5 lakh individuals who lost jobs during the pandemic.
What are the limitations of ABRY?
The scheme primarily benefitted formal sector establishments registered with the EPFO. The informal sector, which employs a significant portion of the Indian workforce, remained largely unaffected. Additionally, the scheme primarily incentivized the creation of new jobs rather than focusing extensively on bringing back those who lost jobs during the pandemic.
How long is the wage subsidy provided under ABRY?
The wage subsidy is provided for a period of two years from the date of joining for new employees and one year for re-employed workers.
Can all employers avail of the benefits of ABRY?
Employers registered under EPFO and meeting the eligibility criteria can avail of the benefits of ABRY.
Is there a limit on the number of employees that can be hired under ABRY?
There is no specific limit on the number of employees that can be hired under ABRY, as long as they meet the eligibility criteria.
Future of Employment Programs in India
The success of ABRY highlights the importance of government intervention in promoting employment opportunities, particularly during economic downturns. Moving forward, future employment programs in India could consider the following aspects:
- Expanding Reach: Initiatives should be designed to encompass the informal sector, which is a crucial driver of the Indian economy. This could involve collaborations with local bodies and industry associations to reach out to informal sector workers.
- Skill Development: Programs should integrate skill development training alongside job creation initiatives. This equips individuals with relevant skills to meet the demands of the evolving job market.
- Entrepreneurship Promotion: Government schemes could encourage self-employment and entrepreneurship by providing microfinance, incubation facilities, and mentorship opportunities.
By addressing these aspects, future employment programs can build upon the success of ABRY and create a more inclusive and resilient Indian job market.
Conclusion
The Atmanirbhar Bharat Rojgar Yojana (ABRY) stands as a testament to the potential of government intervention in fostering job creation and economic recovery. The scheme provided much-needed support to businesses and employees during a challenging time. While limitations exist, ABRY’s success paves the way for future employment programs to be more inclusive and effective in addressing the evolving needs of the Indian workforce.
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