This is how Narendra Modi government is looking at creating 1 cr jobs
It has been revealed that the Narendra Modi government is hoping to create as many as 1 crore new jobs and that too soon in the country. And how? By bearing the entire 12 per cent of the basic salary that employers are mandated to make towards pension for the first three years for new employees!
There has been a paucity of jobs in the country for ages and things were not really getting better fast. However, jobs creation in India may just get a big boost courtesy this order by the Centre. It has been revealed that the Narendra Modi government is hoping to create as many as 1 crore new jobs and that too soon in the country. And how? By bearing the entire 12 per cent of the basic salary that employers are mandated to make towards pension for the first three years for new employees!
This effort was kick-started yesterday when the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, cleared the payment for the entire 12 per cent contribution for first three years for new staff. Elaborating on the government's massive jobs creation drive, Labour Minister Santosh Kumar Gangwar said at press meet today that, "Our government is committed to creating jobs. The scheme which was implemented in 2016 had a provision for the government to pay for 8.33 per cent of the pension contribution by employers. We have further expanded the scope of the scheme. It has been decided that for apparel, garment and textile segments, the full 12 per cent of the employers' pension contribution will also be borne by government," .
Significantly, he added that, since the launch of scheme in August 2016, Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), as many as 30 lakh workers have benefited already.
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Gangwar added, "We feel that the government's decision will help create 1 crore new jobs, and we will increase budget provisioning by about Rs 6,500-Rs 10,000 crore under this scheme".
Gangwar explained how this would be done. H said that employees, who are already reaping the benefit of the 8.33 per cent pension contribution, will be updated to the 12 per cent bracket for the remaining period of their first three years.
The government bears 8.33 per cent employers' contribution to the Employees' Pension Scheme (EPS) for new workers under PMRPY.
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Employees who have joined on or after 1st April 2016, having a new Universal Account Number (UAN) with salary up to Rs 15,000 per month, are covered under this scheme.
(With agency inputs)