Under the scheme, the federal government pays the provident fund contribution by the employer and worker for a interval of two years for new hires by institutions using as much as 1,000. This involves 24% of primary pay–contributions of 12% every by employer and worker. For enterprises with greater than 1,000 staff, the reimbursement is restricted to the worker contribution of 12%. The scheme is relevant for these incomes lower than Rs 15,000 a month.
Launched after the primary wave of the pandemic, the scheme was for a nine-month interval–October 1, 2020, to June 30, 2021.
“Government can extend the scheme for at least six more months. A notification to this effect could come closer to June 30, when the scheme officially ends,” the official stated.
Over 15m Jobs Lost in May: CMIE
The authorities, which budgeted Rs 22,810 crore for the scheme till 2023, had focused 5.5 million enrolments however thus far there have been solely about 2 million registrations as per labour ministry knowledge. This implies the federal government has sufficient fiscal room inside the budgeted quantity to extend the scheme.
The Prime Minister introduced on Monday that the federal government was extending the Pradhan Mantri Garib Kalyan Ann Yojana free meals programme till November. More measures are within the offing to supply aid in a focused method.
According to the Centre for Monitoring Indian Economy, greater than 15 million jobs had been misplaced in May, resulting in a pointy bounce within the unemployment rate to 11.9%, its highest degree up to now one 12 months, in contrast with 7.9% in April.
Total employment fell to 375.5 million in May from 390.8 million in April, as states imposed restrictions within the wake of the second wave. The unemployment price had fallen to 10.18% in June 2020 after touching the height of 23% in April and May 2020 amid the nationwide lockdown in the course of the first wave.
Both rural and concrete centres had been hit onerous. The city unemployment price rose to 14.73% in May from 9.78% in April, in response to CMIE. The rural unemployment price stood at 10.63% towards 7.13% in April 2021.