@the_news_21
Finance Minister Nirmala Sitharaman on Thursday announced a new job creation scheme by giving subsidy to those establishments that make new hires.
The subsidy would be to cover for retirement fund contributions by employees as well as employers for two years, she said.
Employees contribution (12 per cent of wages) and employer’s contribution (12 per cent of wages) totalling 24 per cent of wages would be given to establishments for two years, she said.
Under the Aatmanirbhar Bharat Rozgar Yojana, every Employees’ Provident Fund Organisation (EPFO)-registered establishment taking new employees would get this subsidy.
The scheme will cover any new employee joining employment in EPFO-registered establishment on monthly wages less than Rs 15,000.
It would also cover EPF members drawing monthly wages of less than Rs 15,000, who made an exit from employment during COVID-19 pandemic from March 1, 2020 and is employed on or after October 1, 2020.
The scheme would cover establishments registered with EPFO if they add new employees compared to the reference base of employees as in September 2020.
The condition would be adding a minimum of two new employees for establishments with up to 50 employees. Those establishments with more than 50 employees, would have to give a minimum of five new jobs.
The scheme would be operational till June 30, 2021.
The Finance Minister also announced an extension of the Emergency Credit Line Guarantee Scheme (ECLGS) till March 31, 2021.
Under the scheme, fully guaranteed and collateral-free loans are provided to small and micro enterprises.
Sitharaman also announced a guaranteed credit scheme for supporting stressed sectors.
The scheme would cover entities in 26 stressed sectors identified by the Kamath Committee plus healthcare sector with credit outstanding of above Rs 50 crore and up to Rs 50 crore as on February 29, 2020.
Additional credit of up to 20 per cent of outstanding as on February 29, 2020, would be given to entities in these sectors, she said.
Tenor of additional credit would be five years, including one year of moratorium on principal repayment. Scheme would be available till March 31, 2021.
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