Pradhan Mantri Rozgar Protsahan Yojana or PMRPY Scheme Explained

Pradhan Mantri Rozgar Protsahan Yojana or PMRPY

With the intention of providing employment to the young population the Pradhan Mantri Rozgar Protsahan Yojana was introduced in the budget speech of 2016-2017. In the budget speech 2016-2017 it was explained that the objective of this Yojana is incentivized creation of new jobs in the formal sector, by this Yojana the Government of India will pay the employees’ pension scheme contribution of 8.33% of all new employee enrolling in EPFO for the first 3 years of their employment. It was explained that the government of India has set aside budget provision of rupees 1000 crore for this purpose

Under this scheme new employees has been defined as an employee earning less than Rupees in 15000 per month, who was not working in any establishment registered with the EPFO in the past and did not have a Universal account number all UAN prior to 1st April 2016.

Scheme Eligibility Of PMRPY Or Pradhan Mantri Rozgar Protsahan Yojana:

1) The primary requirement to take benefit of this scheme is that every establishment shall be registered with Employees Provident Fund Organization of EPFO.

2) Establishment should have labour identification number on LIN allotted to them under the shram Suvidha portal. The LIN will be primary reference number for all communication made under the scheme. Read the process here http://www.shramsamadhan.com/p/shram-suvidha-compliances-explanations.html

3) The eligible employers must have added new employees to the reference base in order to avail benefit under the scheme from August 2016 onwards. The reference base means of 31st March 2016. Let us assume that employers had 30 employees in the ECR of 21st March 2016 and in the month of April he had 15 new employees. The employer will be eligible to take benefit of the scheme for those 15 new employees. This will be true for all employees that are newly added in each subsequent month. Provided that no new employees as mentioned above must have worked in any EPFO registered establishment or had UAN prior to 1st April 2016.

4) For organizations established after 1st April 2016, the reference base will be taken as ZERO.

5) Each new employee must have an Aadhar seeded Universal account numbers.

6) The employers will continue to get 8.33% contribution paid by the government for eligible new employee for the next 3 years provided they continue in the employment by the same employer. The employer needs to remit 3.67% on these employees preferably by 10th of the following month.

7) In the case of the textile sector the employers are also eligible to get 3.67% contribution made by the government. If the organization is covered under NIC codes 1410 or 1430.

Instructions for availing benefits under PMRPY scheme (8.33% EPS contribution)

The PMRPY scheme aims to incentivise employers for employment generation by the Government paying the employers' EPS contribution of 8.33%, for the new employees, for the first three years of their employment and is proposed to be made applicable for unemployed persons that are semi-skilled and unskilled.


      a) Employers are to Login to the PMRPY portal (www.pmrpy.gov.in) using their LIN/EPFO registration ID (Format as at Annex-I)
      b) Enter the organisational details that are required as per the format including the Organisational PAN. It is necessary to mention the nature of industry/sector as per National Industrial Classification Code NIC-2008, maintained by the Ministry of Statistics & Programme Implementation.


         The appropriate NIC code is determined/ assessed by the value added by production of different products and services or net revenue derived from various activities, i.e. the industry code of the primary manufactured product (output) of that establishment. In case of multi-product establishments, the appropriate NIC code is determined by the category of the product contributing the maximum value added for the establishment. Where such assessment is not possible, classification may be done in terms of gross revenue attributed to the products, or services of the establishments, the number of persons employed for various activities.


      c) For the textile (apparel) sector dealing with the Manufacture of wearing apparel, in particular, NIC 1410 (Manufacture of wearing apparel, except fur apparel); and NIC 1430 (Manufacture of knitted and crocheted apparel), the Government will also pay the EPF contribution of 3.67%, in addition to payment of the EPS contribution of 8.33%. The detailed sub-sectors covered for this component are given below:

         (1) NIC 1410: Manufacture of wearing apparel, except fur apparel
             a. NIC 14101: Manufacture of all types of textile garments and clothing accessories
             b. NIC 14102: Manufacture of rain coats of waterproof textile fabrics or plastic sheeting
             c. NIC 14105: Custom tailoring
             d. NIC 14109: Manufacture of wearing apparel not elsewhere classified

         (2) NIC 1430: Manufacture of knitted and crocheted apparel