The government hopes to create 1 crore new jobs by bearing the entire 12 percent of the basic salary that employers are mandated to make towards the pension for the first three years for new employees.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, yesterday approved payment for the entire 12 percent contribution for first three years for new staff.
“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 percent of the pension contribution by employers.
“We have further expanded the scope of the scheme. It has been decided that for apparel, garment and textile segments, the full 12 percent of the employers’ pension contribution will also be borne by the government,” Labour Minister Santosh Kumar Gangwar said at a briefing today.
Source: Economic Times