Finance Minister Nirmala Sitharaman on Thursday introduced a brand new job creation scheme by giving subsidy to these institutions that make new hires. The subsidy can be to cowl for retirement fund contributions by workers in addition to employers for 2 years, she stated.
Staff contribution (12% of wages) and employer’s contribution (12% of wages) totalling 24% of wages can be given to institutions for 2 years, she stated.
Below the Aatmanirbhar Bharat Rozgar Yojana, each Staff’ Provident Fund Organisation (EPFO)-registered institution taking new workers would get this subsidy.
The scheme will cowl any new worker becoming a member of employment in EPFO-registered institution on month-to-month wages lower than ₹15,000.
It will additionally cowl EPF members drawing month-to-month wages of lower than ₹15,000, who made an exit from employment throughout COVID-19 pandemic from March 1, 2020 and is employed on or after October 1, 2020.
The scheme would cowl institutions registered with EPFO in the event that they add new workers in comparison with the reference base of workers as in September 2020.
The situation can be including a minimal of two new workers for institutions with as much as 50 workers. These institutions with greater than 50 workers, must give a minimal of 5 new jobs.
The scheme can be operational until June 30, 2021.
The Finance Minister additionally introduced an extension of the Emergency Credit score Line Assure Scheme (ECLGS) until March 31, 2021. Below the scheme, absolutely assured and collateral-free loans are supplied to small and micro enterprises.
Ms. Sitharaman additionally introduced a assured credit score scheme for supporting pressured sectors.
The scheme would cowl entities in 26 pressured sectors recognized by the Kamath Committee plus healthcare sector with credit score excellent of above ₹50 crore and as much as ₹50 crore as on February 29, 2020.
Further credit score of as much as 20 per cent of excellent as on February 29, 2020, can be given to entities in these sectors, she stated.
Tenor of extra credit score can be 5 years, together with one yr of moratorium on principal compensation. Scheme can be accessible until March 31, 2021.