Addressing the press conference on Monday, Union Finance Minister Nirmala Sitharaman has announced to extend the Self-Reliant India Employment Scheme till 31 March 2022. The objective of the scheme is to provide benefits to new employees and help employers and employees to contribute to the Employee Provident Fund account. Let us know what qualifications need to be fulfilled to take advantage of this.
Eligibility to take advantage of the scheme
An employee who is drawing a monthly salary of less than Rs 15,000 and was not working in a registered institution with the Employees’ Provident Fund Organization (EPFO) before 1st October 2021 and his Universal Account Number or EPF member before 1st October 2020 Did not have account number, he would be eligible for the benefit.
In an institution having up to one thousand employees, the government will pay both ie 12 per cent employees’ contribution and 12 per cent employers’ contribution, 24 per cent of the total salary in the EPF. This will be for a period of two years in case of new employees. In institutions with more than one thousand employees, the government will pay only the employees’ share of the EPF contribution, which will be 12 per cent of the salary. This will also benefit new employees over a period of two years.
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Under the scheme, the Government of India had decided to provide a subsidy of two years, in case of new employees hired after 1 October 2020 and up to 30 June 2021. Now the benefit of the scheme can be taken till 31 March 2022.
At present, the mandatory monthly contribution by the employee is 12 per cent of the monthly pay, which includes monthly basic pay, dearness allowance and retaining allowance (if any).
EPFO will contribute electronically to the Aadhaar linked account of the members. Make sure that your UAN is linked with Aadhaar.
(Story: Sunil Dhawan)