By bearing cost of provident fund of low-paid workers in formal sector, govt hopes to spur job creation
The Cabinet on Wednesday approved an expenditure of ₹22,810 crore to bear the cost of pensions of low-paid workers in the formal sector, hoping that it will spur job creation, albeit at the lower end of the salary threshold.
The two-year scheme to subsidize wages through the Employees’ Provident Fund Organization (EPFO) is part of the Atmanirbhar Bharat Rojgar Yojana announced last month by Union finance minister Nirmala Sitharaman.
“The cabinet has approved an expenditure of ₹1,584 crore for the current financial year and ₹22,810 crore for the entire scheme period of 2020-2023,” the government said after a cabinet meeting. The Atmanirbhar Bharat Rojgar Yojana will also “incentivize creation of new employment opportunities during the covid recovery phase”, it said.
Source: livemint
