Unorganized sector employees will also get benefit of PF scheme, 10 million new jobs will be created: Government
The government has made PF contribution 12% for new employees in the Prime Minister’s Employment Promotion Scheme.
Government Jobs vacancy 2018 : The central government will now bear the first 3 year Employee PF contribution of new employees working in the unorganized sector. For this Modi government has expanded the scope of Prime Minister’s Employment Promotion Scheme. Earlier, only the organized sector employees were benefiting from the scheme. The government has made PF contribution 12% for new employees in the Prime Minister’s Employment Promotion Scheme. The proposal was approved in the meeting of the Cabinet Committee on Economic Affairs, led by Narendra Modi on Thursday.
1) What will be the advantage?
Now the workers of the unorganized sector will get social security cover like PF and pension facility. At the same time, people on a large scale will get jobs.
– Labor Minister Santosh Gangwar said that the government’s decision will help in generating 10 million new jobs. The budget for the scheme will increase from 6,500 to 10,000 crores. For the first employees, the Government was distributing PF 8.33% of Basic Salary, now it will complete the Employer Contribution ie 12%.
2) So far 31 lakh got the advantage
– Under the Prime Minister’s Employment Promotion Scheme, a total of 31 lakh people have been employed in the formal sector. So far, Rs. 500 crores have been spent under this scheme.
3) What is Employment Incentive Plan?
– Prime Minister’s Employment Incentive Scheme started in August, 2016. Under this, the government is introducing Employers Contribution in the pension scheme for the new impediment in the organized sector. It is 8.33% of the basic salary + DA of the employee.
The advantage of the scheme is that employers get encouragement to hire new people, while job opportunities for people also increase.