Government to Pay Employer’s Contribution for EPF & EPS under PMRPY

The Central Government has decided to pay for the employer’s contribution towards EPF and EPS accounts of the members to boost job creation in the formal sector under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY). However, this facility can be availed for only three years by the employers. Even if an employee changes his job, the new employer can avail the benefits under this scheme for the remaining period.

The employee contributes 12% of the basic salary + dearness allowance (subject to a maximum value of ₹ 15,000) towards his EPF account. The employer, on the other hand, contributes 3.67% towards the EPF and 8.33% towards the EPS account of the employee. Earlier, the government facilitated for the payment of only the employer’s EPS contribution but after a fresh amendment dated 12th April 2018, the Government of India will pay the total amount of employer’s contribution towards eligible employees with effect from 1st April 2018.

Eligibility for PMRPY Benefits

In order to be eligible for availing PMRPY benefits, the employee and the employer have to fulfil certain requirements:

• The establishment should have a LIN allotted at the Shram Suvidha Portal (SSP)
• The establishment should have a valid organisational PAN
• The employer must add a new employee having a UAN seeded with Aadhaar and who has not worked in an EPF registered establishment in the past.
• The basic salary + dearness allowance of the employee should be up to ₹ 15,000.
• New employees having basic salary + dearness allowance more than ₹ 15,000/- per month will not be eligible for benefits.
• A new employee is one, who has not worked in an EPFO registered establishment before 1st April 2016.
• The new company, where the eligible employee has switched, will be eligible for PMRPY benefits for the balance period only when it registers for the employee at the SSP.
• The Government will make the payment of employer’s contribution only after the employer has deposited the employee’s share of 12% in the employee’s EPF account.
• The scheme will be applicable for three years for each eligible employee

Important Points related to PMRPY

• All establishments registered with EPFO will be eligible for availing PMRPY benefits
• The establishment should have Labour Identification Number (LIN) allotted to it at the Shram Suvidha Portal
• The employee should have a valid Universal Account Number (UAN) linked with Aadhaar
• The basic salary + dearness allowance of the employee should be less than or up to ₹ 15,000
• The establishment has to compulsorily register on the PMRPY Portal to avail benefits under this scheme.

The government has made provisions for establishments to avail all facilities under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) online and they do not have to visit any government office. Start-ups, as well as big companies, can avail these facilities and contribute to job creation.