GOI announces ABRY scheme to create jobs

Only those companies with less than 50 employees, that make at least 2 new hires and those with more than 50 employees, that make a minimum of 5 hires will be eligible for employment-generation incentives

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The Government of India has announced the Atmanirbhar Bharat Rozgar Yojana (ABRY), to create more jobs. The scheme will offer employment generation incentives to all companies registered under the Employees’ Provident Fund Organisation (EPFO), if they hire new employees. Those who were not covered under EPFO earlier or were rendered jobless during the pandemic (in the March to September period) will benefit. It will be effective for the October 1, 2020 to June 30, 2021 period.

To avail the benefits of the scheme, companies with less than 50 employees must hire at least two new employees, and those with over 50 employees must hire at least five new employees.

The Government will cover the 12 per cent contribution towards the EPF of the employees and employers, in case of companies that have up to 1,000 EPFO-registered employees drawing a salary of up to Rs 15,000 per month.

This will make it easier for companies to create more jobs, without having to take on much financial burden.

The Government also announced income-tax relief of up to 20 per cent— under the Income Tax Act — for first-time buyers of houses that cost up to Rs 2 crore. This relief will be available up to June 30, 2021. This is hoped to help members of the middle class fulfil their dream of owning a house.