PMPRPY Scheme - Pradhan Mantri Paridhan Rojgar Protsahan Yojana

Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) enables incentives towards employers, registered with Employees’ Provident Fund Organization (EPFO), for creation of new employment, wherein the Government of India will be paying the 8.33% EPS contribution related to the employer towards new employment created for upto 3 years. In this article, we look at the Pradhan Mantri Paridhan Rojgar Protsahan Yojana Scheme in detail.

About Pradhan Mantri Paridhan Rojgar Protsahan Yojana (PMPRPY)

Pradhan Mantri Paridhan Rojgar Protsahan Yojana (PMPRPY) permits employers, registered with EPFO, to obtain a 3.67% EPF contribution paid by the Government in adding up to the 8.33% EPS contribution. This benefit can be obtained by the textile (apparel) sector establishments that deal with the Manufacture of wearing apparel, in particular NIC Codes 1410 and 1430.

Eligibility Conditions

The establishments must be registered with Employees’ Provident Fund Organization (EPFO) for obtaining benefits related to the scheme.
Establishments registered with the EPFO must also have a Labor Identification Number (LIN) allotted to them under the Shram Suvidha Portal (). The LIN will be the primary reference number for all communication that is to be made under the PMRPY Scheme.
The establishment must have a valid organizational PAN, digital signature and a bank account by means of which payments to establishment will be made.
The eligible employer should have added new employees to the reference base (March 2016) of workers to obtain benefits under the Scheme from August, 2016 onwards.
The reference base of workers will be calculated by the number of employees against whom the employer has deposited the 12% (3.67% EPF + 8.33% EPS) with EPFO as on 31st March, 2016, as ascertained or verified from the monthly ECR for March, 2016.
Monthly ECR for March, 2016 must have been filed.
For new establishment obtaining registration with EPFO after 1st April, 2016, the employer can obtain of PMRPY benefits for all new qualified employees.

Definition of New Employee

A new employee for the reasons of the scheme is thereby defined as:

an employee who earns less than Rs. 15000 per month and
not working in any establishment that is registered with the EPFO in the earlier period (prior to 01st April, 2016) and
did not have a Universal Account Number preceding to 01st April, 2016.

The employers will persist to get the 8.33% contribution that is paid by the Government for these qualified new employees for the next 3 years, provided they continue in employment by the same employer. The 8.33% contribution will be paid by GOI after the employer has paid the 3.67% EPF contribution for these new employees every month. To prevent any penalty on the EPF or EPS contribution, the employer is advised to present the PMRPY online form at the earliest, if possible by the 10th of the subsequent month. Employers or Establishments applying for the Scheme shall be completely accountable for the information uploaded and be legally responsible for dues and penalties under the The Employees’ Provident Fund Scheme, 1952 for misstatement, misrepresentation etc. The Scheme will be in operation for a period of 3 years for the duration of which the government will persist to pay the employer’s share of 8.33% EPS contribution for the subsequent 3 years. That is, all new qualified employees will be subject to coverage under the PMRPY Scheme till 2019-20.

Availing Benefit under PMPRPY

The process for availing benefit under the Pradhan Mantri Paridhan Rojgar Protsahan Yojana scheme can be divided in to two stages as followsL

Before Unified Portal

The qualified establishment will bring up to date the PMRPY interface each month (latest by 10th of following month) through a PMRPY form wherein the explanation of the post (job role) for the latest employment requires to be specified together with the date of joining and date of exit, if appropriate. PMRPY form for a month must be submitted by eligible employers, if at all possible by the 10th day of the subsequent month. In case the employer does not present the information on-line on the PMRPY form by 10th of the following month, he will not be qualified for obtaining benefits under the PMRPY Scheme for that month. An online certificate or undertaking would be made by the employer in approved format accordingly digitally signed. Till the beginning of new ECR 2.0, the release of the contribution fund will be made directly to the employer in his bank account. The particulars of the new employee (as submitted by the employer in the ECR) will be subject to validation from the UAN database UAN seeded with Aadhaar number will be validated in UIDAI/EPFO database for authentication and de-duplication After appropriate verification, the system will calculate the amount due for that establishment against the confirmed new employee.

After Unified Portal

Employer will login to the Employer Interface of EPFO’s Unified Portal. Afterward, he will register new employees with Aadhaar information joined for the duration of the month all the way through individual or bulk registration. Get UAN allocated to the new members and endorse member’s Aadhaar utilizing his Digital Signature Certificate. Login on PMRPY portal () Add new members suitable for PMRPY scheme on PMRPY portal. The online PMRPY return is to be digitally signed by the employer. This activity should be completed before 10th of the subsequent month or before submitting ECR for that month, either of which is earlier. Only then the benefit under the schemes with reference to that ECR will be released. Employer will login to the Employer Interface of EPFO’s Unified Portal. Employer will submit the ECR with not any change with respect to PMRPY scheme, i.e. employer will mention pension share (8.33%) and employer EPF share (3.67%) in ECR against PMRPY eligible member too. System will make a decision regarding the eligibility on the basis of information given by employer. Accordingly system will create challan for payment after making adjustments amount qualified under PMRPY scheme. After that, the system, all the way through ECR portal of EPFO, would make possible the employer for the remittance of the dues exclusive of the subsidy component as determined above in the challan created by the system.

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Frequently Asked Questions

Common questions about PMPRPY Scheme Guide for Employers.

The PMPRPY Scheme enables the Government of India to pay the 8.33% employer's contribution towards the Employees' Pension Scheme (EPS) for new employment created in the textile (apparel) sector. This incentive is provided to eligible employers registered with the Employees' Provident Fund Organization (EPFO) for a period of three years.

The establishments must be registered with the EPFO, have a valid Labor Identification Number (LIN) allotted under the Shram Suvidha Portal, a valid organizational PAN, digital signature, and a bank account. Additionally, they should have added new employees earning less than Rs. 15,000 per month to their workforce after March 2016, who were not previously registered with the EPFO.

A new employee, for the purposes of the scheme, is an individual who earns less than Rs. 15,000 per month, was not working in any EPFO-registered establishment before April 1, 2016, and did not have a Universal Account Number prior to that date.

The Government of India will pay the 8.33% employer's contribution towards the EPS for eligible new employees for a period of three years, provided they continue to be employed by the same employer during this time.

Employers need to update the PMPRPY interface each month with details of new employees, including their job roles, joining dates, and exit dates (if applicable). They must also submit an online certificate or undertaking in the approved format, digitally signed. After verification, the system calculates the amount due for the establishment against the confirmed new employees.

After the implementation of the Unified Portal, employers must log in to the Employer Interface, register new employees with Aadhaar information, allocate Universal Account Numbers (UANs), and endorse members' Aadhaar using their Digital Signature Certificate. They must then add eligible new members to the PMPRPY portal and digitally sign the online PMPRPY return before the 10th of the following month or before submitting the ECR, whichever is earlier.

No, the PMPRPY Scheme is specifically designed for the textile (apparel) sector establishments dealing with the manufacture of wearing apparel, particularly those with NIC Codes 1410 and 1430. Employers from other sectors or industries are not eligible for the scheme.

Yes, employers must submit the PMPRPY form, if possible, by the 10th day of the following month. If they fail to submit the information online by this date, they will not be eligible for benefits under the PMPRPY Scheme for that particular month.

The particulars of the new employees, as submitted by the employer in the ECR, are validated against the UAN database. UANs seeded with Aadhaar numbers are authenticated and de-duplicated in the UIDAI/EPFO database for verification.

The PMPRPY Scheme will be in operation for a period of three years, till 2019-20. During this period, the government will continue to pay the employer's share of 8.33% EPS contribution for eligible new employees covered under the scheme.