Page 721 - ES 2020-21_Volume-1-2 [28-01-21]

348 Economic Survey 2020-21 Volume 2

Pradhan Mantri Rojgar Protsahan Yojana (PMRPY): PMRPY was launched on 9 August, 2016
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with the objective to incentivise employers for creation of new employment. Under the scheme,
Government of India was paying 8.33 per cent of the employer EPS contribution for all sectors in
respect of these new employees. The scheme targeted employees earning upto ` 15,000 per month
and with the aims to cover a large number of informal workers to the formal workforce. The benefits
of the scheme were extended to the textile sector under PMPRPY for made-ups and apparels sector
with an additional 3.67 per cent of the employers EPF contribution, thus bringing the total incentive
to 12 per cent towards EPF and EPS both. The scope of the scheme was further enhanced w.e.f.
01.04.2018 to provide the benefit of full 12 per cent employers’ contribution for all sectors. Under
the scheme, benefits have been provided to 1.21 crore beneficiaries through 1.52 lakh establishments.
The terminal date for registration of beneficiary through establishment was 31 March, 2019. The
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average share of workers in eligible enterprises has improved from 62.6 per cent to 64 per cent and

the share of workers eligible for EPF within the eligible enterprises has increased from 32.5 per cent

to 37.5 per cent (Figure 7).These, facts support the view that the formalization of the workers in
eligible enterprises has improved with the incentive under the PMRPY scheme.

Figure 7: Formalization Effect of PMPRY: Share of Workers (in per cent)

0 100 200 300 400 500
470
Employment and related activities
343
198
Production of goods for own final use
115
95
Unpaid domestic services for HHs members
315
73
Unpaid caregiving services for HHs members
137
Male
103
Unpaid volunteer, trainee and other unpaid work
100 Female

Source: Unit level PLFS quarterly data.
Note: Workers getting regular wage/salaries.

Other measures

• In order to provide relief to the organized sector employees, a notification issued on 28 March,
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2020 by the Government provisioning non-refundable advance of 75 per cent of outstanding

balance or 3 months’ wages whichever is lower, allowed to the members of EPFO. As on 9
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December, 2020, 53.62 lakh members of EPFO have availed facility of online withdrawal
amounting to ` 13,587.53 crore.
• Reduction in statutory rate of contribution from 12 per cent to 10 per cent for wage months

May, June and July, 2020 for all class of establishments covered under the EPF & MP Act, 1952
announced as part of Atmanirbhar Bharat package. Reduction in rate of EPF contributions is
intended to benefit 4.3 crore employees and employers of 6.5 lakh establishments to tide over
the immediate liquidity crisis to some extent.