Government plans one crore new jobs on 12 pc pension incentive

29 March 2018, 02:01 PM
Government plans one crore new jobs on 12 pc pension incentive
Government plans one crore new jobs on 12 pc pension incentive

The Union government is planning to create one crore jobs by bearing 12 per cent of the basic salary that employers are mandated to make towards pension for the first three years for new staff, Labour Minister Santosh Kumar Gangwar said on Thursday.

"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,” the minister told reporters.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved payment for the entire 12 per cent contribution for first three years for new employees.

"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," Gangwar said.

The minister said that since the launch of scheme in August 2016, Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), as many as 30 lakh workers have benefited.

"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," he said.

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, Gangwar said.

The government bears 8.33 per cent employers' contribution to the Employees' Pension Scheme (EPS) for new workers under PMRPY.
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 inputs from agencies)

First Published: Thursday, March 29, 2018 01:55 PM
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