Alert! One crore new jobs on 12% pension incentive: Here’s the detail
New Delhi/Bhuabneswar: After the biggest ever recruitment drive in Indian Railways, the Narendra Modi-led BJP government is considering to create one crore new jobs by bearing the entire 12 per cent of the basic salary that employers are mandated to make towards pension for the first three-year period for new employees.
The Cabinet Committee on Economic Affairs, chaired by PM Modi, last week approved payment for the entire 12 per cent contribution for first three years for new staff.
Labour Minister Santosh Kumar Gangwar said that the Modi government is committed to creating jobs.
“The scheme which was implemented in 2016 had a provision for the government to pay for 8.33 per cent 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 per cent of the employers’ pension contribution will also be borne by government,” Gangwar said.
Since the launch of Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) in 2016, around 30 lakh workers have already benefited, he said, adding, “We feel that the government’s decision will help create 1 crore new jobs, and we will increase budget provisioning by about Rs 6,500-Rs 10,000 crore under this scheme.”
He further clarified that the employees reaping the benefit of the 8.33 per cent pension contribution will be updated to the 12 per cent bracket for the remaining period of their first three years.
Employees who have joined on or after 1st April 2016, having a new Universal Account Number (UAN) with salary up to Rs 15,000 per month, are covered under this scheme, PTI reported.