Under the aforesaid Scheme, effective 9th August 2016 for all eligible Employers, the Government of India will pay the following contributions of the Employer for new employees added to the reference base, for the first three years of their employment (i.e., upto FY 2019-20 until which this Scheme is valid).
(1) the Employer’s contribution of 8.33% to the Employee Pension Scheme (EPS)
(2) An additional 3.67% of Employer’s contribution to Employees Provident Fund (EPF) for textile (apparel) industries ONLY.
New Employee, is an employee earning less than 15,000/- per month, who has not worked in any EPFO registered establishment on a regular basis in the past and did not have a Universal Account Number, prior to 1st April 2016.
Reference base of workers will be determined by the number of employees against whom the employer has deposited the 12% with EPFO as on 31st March 2016.
Scheme eligibility – conditions to be fulfilled:
- Establishments registered under EPFO including those registered on or after the 1st of April, 2016
- Establishments that are registered with EPFO should also have a Labour Identification Number (LIN) allotted to them under Shram Suvidha Portal. The LIN will be the primary reference number for all communications under the Scheme.
- Employers must register with www.pmrpy.gov.in and are advised to submit the PMRPY online form at the earliest, preferably by 10th of every following month. If an employer fails to submit their PMRPY scheme form online, they will not be eligible for the scheme.
- Eligible employers are required to add all the New Employees to the reference base of workers
- The New Employee’s income should be less than Rs.15,000/- and they should continue to be employed by the same employer.