40 crore employees will get big benefit, Modi government is going to do this big work
The Union Cabinet has approved the Self-Reliant India Scheme to increase employment in the country. The Social Security Code is set to go into effect on April 1 next year. This will open the doors of EPFO to artisans working in 400 million unorganized sectors across the country.
Image Source : VTV News
The big decision regarding EPFO
Benefits will be available under the self-help scheme
40 crore employees will get this benefit
In the new year, EPFO is being encouraged by the government to focus on implementing the Self-Reliant India Employment Scheme. The unorganized sector will also come under EPFO after this scheme.
scheme is worth Rs 22,810 crore
The scheme will cover employees who have joined the job between 1 October 2020 and 30 June 2021. The scheme will cost Rs 1,584 crore in the current financial year. So the expenditure during the entire plan period till 2020-2023 will be Rs 22810 crore.
More than 40 crores unorganized sector in the country
There are more than 400 million unorganized sectors in the country that do not appear in any establishment or wage register. The government plans to bring each of these institutions under the EPFO.
The government will help
The subsidy will be for covering the retirement fund contribution i.e. PF made by the employer for two years. 12 percent contribution to PF and 12 percent contribution made by the employer i.e. 24 percent contribution will be given by the subsidy government.
Under the scheme, the government will provide PF from both the employer and the employer to the companies employing 1000 people.
The network has to increase the space
Brijesh Upadhyay, former secretary general of the Indian Trade Union Confederation, said the implementation of the Social Security Code would pose a new challenge to the EPFO in 2021.