Pradhan Mantri Rojgar Protsahan Yojana

Q.  Which of the following is/are true regarding Pradhan Mantri Rojgar Protsahan Yojana?

1) The scheme will be applicable for the new employees, earning Rs.15, 000 a month, who have worked for 240 days during a year in an establishment.
2) Government will pay 8.33% of wages to Employees Pension Scheme (EPS) on behalf of employers for new workers during first 5 years of employment.
- Published on 13 Jul 16

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

ANSWER: Only 1
 
  • Launched in Union Budget 2016-17, it is a pension scheme contribution in a bid to create more formal sector jobs.
  • The scheme will be applicable for the new employees, earning Rs.15, 000 a month, who have worked for 240 days during a year in an establishment.
  • About 3.5 lakh establishments, which hire more than 20 workers, will be covered under the scheme.
  • Govt will pay 8.33% of wages to Employees Pension Scheme (EPS) on behalf of employers for workers during first three years of employment.
  • The payment of the EPS contribution will be in the form of reimbursements to employers
  • Regulatory fear: It will increase regulation in the labour market which firms would not prefer as there will be increased scrutiny of their books.

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