Biggest EPFO Update ! ₹15,000 Joining Bonus | Employment Linked Incentive Scheme | Budget 2024

00:19:41
https://www.youtube.com/watch?v=UQuxvv9xhNU

Ringkasan

TLDRThe government has announced a significant benefit package for the Provident Fund (PF) system, aimed at both employers and employees, including freshers and seasoned professionals. This initiative will dispense approximately INR 1,07,000 crore in benefits. A variety of schemes have been introduced to boost employment and skills development, including initiatives focused on new entrants to the workforce, job creation in manufacturing, and direct employer support. Freshers are a focal group, receiving a one-month wage incentive and further financial support up to 24% of their salary. Scheme A targets new workers, offering wage bonuses; Scheme B incentivizes manufacturing sector employment with salary subsidies; Scheme C provides financial reimbursement for employers hiring additional staff. Eligibility is linked to EPFO registration with a salary limit elevated to INR 1L. Some concerns include potential employer liabilities if employees leave early, and compliance and inspection burdens. This array of schemes represents the most substantial PF initiative to date from the government.

Takeaways

  • 💼 New PF benefits announced for employees and employers.
  • 💰 INR 1,07,000 crore in benefits to be distributed.
  • 👨‍💼 Freshers get 1-month salary and up to 24% incentive.
  • 🏭 Focus on job creation in manufacturing.
  • 📝 Eligibility includes EPFO registration with salary up to INR 1L.
  • 📅 Scheme spans 3-6 years for benefits.
  • 🔄 Employers refund benefits if employee leaves within 12 months.
  • 📈 Huge scale, larger than past PF-related schemes.
  • ⚖️ Compliance burdens could discourage employer participation.
  • 🔎 Similar schemes faced challenges with PF withdrawal restrictions.

Garis waktu

  • 00:00:00 - 00:05:00

    The government has announced a significant Provident Fund (PF) benefit scheme targeting both freshers and experienced employees, involving a total fund transfer of INR 1,07,000 crore. Freshers are particularly benefited with a 1-month salary bonus and up to a 24% salary incentive. Experienced employees will receive around INR 1,000 in PF benefits. This comprehensive scheme is aimed to support various sectors and improve employment and skilling. Details on eligibility, benefits, and personal insights are shared in the video.

  • 00:05:00 - 00:10:00

    Three schemes, A, B, and C, focus on EPFO under the government's initiative to boost employment. Scheme A incentivizes freshers across sectors by offering a month's wage as a subsidy, with employment linked incentives contingent on a compliance test. The scheme estimates to benefit 1 crore individuals over a three-year period but carries the risk that if employment terms are not met, the subsidy must be refunded by the employer. Scheme B focuses on manufacturing, providing benefits up to four years, sharing benefits equally between employees and employers and carrying specific conditions for eligibility.

  • 00:10:00 - 00:19:41

    Scheme C supports employers hiring new employees by reimbursing EPFO contributions for up to two years, encouraging job creation even from previous employees. However, issues with previous schemes like PMRPY and ABRY suggest potential complications such as withdrawal restrictions, employee lock-ins, and inspection burdens on employers. It's crucial for companies to maintain high compliance levels when applying for these government benefits. The video concludes with practical advice and additional resources for HR and payroll professionals on navigating these schemes.

Peta Pikiran

Mind Map

Pertanyaan yang Sering Diajukan

  • Who benefits from the new PF scheme?

    Both employees and employers benefit, including freshers and experienced workers.

  • What is the estimated financial impact of the PF scheme?

    The government will provide benefits worth around INR 1,07,000 crore.

  • What benefits do freshers receive under the new scheme?

    Freshers receive a one-month wage subsidy from the government.

  • What is the eligibility criteria for the new PF scheme?

    Employees covered under EPFO with a salary up to INR 1L are eligible.

  • How is the benefit for freshers paid out?

    The benefit is paid in three installments into the employee's EPFO account.

  • What are Scheme A, B, and C focused on?

    Scheme A focuses on first-time employees, Scheme B on job creation in manufacturing, and Scheme C on supporting employers.

  • What is a potential risk for employers with the new scheme?

    If an employee leaves within 12 months, the employer must refund the government-provided subsidy.

  • What additional schemes are related to PF?

    There are five schemes in total, including ones for internships and ITI development.

  • What support do companies get under Scheme C?

    Scheme C reimburses employers up to INR 3,000 per new employee hired.

  • What is a major disadvantage noted in the implementation of previous schemes?

    Restrictions on PF amount withdrawal for employees during scheme operation.

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Gulir Otomatis:
  • 00:00:00
    The government has introduced a huge benefit to the PF (Provident Fund)!
  • 00:00:04
    This benefit will be offered to crores of employees as well as employers of this nation.
  • 00:00:09
    Freshers as well as experienced employees will receive it.
  • 00:00:12
    The government will be transferring benefits worth around INR 1,07,000 crore to employees and employers.
  • 00:00:20
    Freshers have received a huge bonanza in this.
  • 00:00:22
    The government will offer their 1-month salary.
  • 00:00:25
    Apart from this, up to 24% incentive of their salary will be provided by the government.
  • 00:00:31
    Also in the case of experienced employees, the government will provide benefits of around INR 1,000 in the PF.
  • 00:00:36
    This scheme is so huge and so important,
  • 00:00:38
    that after almost 2 years, I am compelled to create another video on PF.
  • 00:00:42
    Even though the channel name is Labour Law Advisor,
  • 00:00:44
    But we mostly create videos on Personal Finance, that you know.
  • 00:00:47
    In any case, which benefits will be received in this scheme?
  • 00:00:50
    What will be their eligibility criteria?
  • 00:00:52
    What is my personal opinion on these topics?
  • 00:00:55
    I will share detailed information about all of this in this video.
  • 00:00:59
    My name is Rishabh Jain AKA Jagruk RJ.
  • 00:01:02
    And you are watching your favourite channel Labour Law Advisor.
  • 00:01:05
    If you still haven't subscribed to the channel until now,
  • 00:01:08
    then click on the 'subscribe' button.
  • 00:01:10
    Click the 'like' button of the video too.
  • 00:01:13
    Priority to employment and skilling.
  • 00:01:16
    An initiative to facilitate employment, and skilling for 4.1 crore youth...
  • 00:01:23
    will provide 1 month's wage to all persons newly entering the workforce...
  • 00:01:28
    based on enrolment in the EPFO (Employees Provident Fund Organisation), an incentive will be provided.
  • 00:01:33
    This employer focus scheme will cover additional employment in all sectors.
  • 00:01:44
    In order to encourage employment and skilling, the government has introduced up to 5 schemes.
  • 00:01:49
    In which, three schemes, Schemes A, B and C will be implemented under EPFO (Employees Provident Fund Organisation).
  • 00:01:54
    Apart from that, one scheme is for internship,
  • 00:01:56
    And another scheme is for ITI (Industrial Training Institutes) development.
  • 00:01:59
    Today, our focus is on EPFO scheme A, B and C's coverage.
  • 00:02:03
    Whose enrolment period is of 2 years and benefit period would be around 3-6 years.
  • 00:02:08
    There is an estimate that approximately 2.9 Crore employees will benefit from it.
  • 00:02:13
    The total benefit amount would be INR 1.07 Lakh Crore.
  • 00:02:17
    Two times previously, the government had introduced such similar schemes through EPFO.
  • 00:02:22
    which were quite successful.
  • 00:02:24
    In August 2016, the Government introduced the Pradhan Mantri Rojgar Protsahan Yojana(PMRPY).
  • 00:02:29
    In which, one part of PF was to be given by the government.
  • 00:02:32
    Almost 1 crore workers benefitted from this scheme.
  • 00:02:36
    And overall the benefit of INR 9,200 Crore.
  • 00:02:39
    The government transferred it.
  • 00:02:41
    Under EPFO, another similar scheme was introduced by the government.
  • 00:02:44
    In December 2020, whose name was Atmanirbhar Bharat Rojgar Yojana (ABRY).
  • 00:02:49
    In this, both employees and employers were transferred the benefit.
  • 00:02:53
    Almost 10,000 Crore and in total 60L workers received benefit from it.
  • 00:02:59
    Now, the scheme introduced by the government is almost 10 times greater than both the schemes.
  • 00:03:04
    The scope of benefit has also been increased.
  • 00:03:07
    Because, both the schemes were restricted upto INR 15,000 salary.
  • 00:03:12
    But the scheme that will be introduced now.
  • 00:03:14
    In all the three schemes, the salary criteria has been increased from INR 15,000 to INR 1L per month.
  • 00:03:20
    So firstly let's understand the details of Scheme A.
  • 00:03:28
    Scheme A: First timers.
  • 00:03:31
    This scheme will provide 1-month wage to all persons newly entering the workforce,
  • 00:03:38
    in all formal sectors.
  • 00:03:40
    So firstly let's understand, what are the benefits of Employment Linked Incentive Scheme A?
  • 00:03:45
    It's primary benefit is one month's salary of INR 15,000 as a subsidy.
  • 00:03:50
    The government will provide.
  • 00:03:52
    Because, the government considers any company that gives a chance to a fresher,
  • 00:03:56
    they have a learning curve and against that,
  • 00:03:59
    the government would like to incentivise the company.
  • 00:04:02
    By the way If there is a learning curve above that,
  • 00:04:05
    then the government should incentivise the employer.
  • 00:04:07
    Here the employee is receiving the incentive, which I didn't really understand.
  • 00:04:11
    It is kind of a joining bonus.
  • 00:04:13
    But the employee is incentivised.
  • 00:04:15
    How does it benefit the employer? I don't understand.
  • 00:04:18
    This subsidy of INR 15,000.
  • 00:04:20
    This will be done in three installments to the employee.
  • 00:04:23
    How will they be paid in three installments?
  • 00:04:25
    As far as I know, maybe in the employee's EPFO account in part payments of INR 5,000 will be transferred.
  • 00:04:33
    Over the period of 1 year or 2 years, or any other detail.
  • 00:04:36
    we will understand about this scheme ahead.
  • 00:04:37
    It is expected that almost 1 crore people will be covered in this scheme,
  • 00:04:41
    And this scheme will run for 2 years.
  • 00:04:43
    It means, the one who will register towards the end of 2 years. He will receive the benefit up to 3rd year.
  • 00:04:47
    Hence the benefit period of this scheme is 3 years.
  • 00:04:50
    Now, let's understand the scheme's eligibility criteria and conditions.
  • 00:04:53
    The first scheme is for all sectors, whether it's an IT company or a manufacturing company.
  • 00:04:59
    Whichever company that gives the opportunity to freshers.
  • 00:05:02
    All those freshers will receive the benefit of the scheme.
  • 00:05:04
    But only those people will receive benefit who are covered in the EPFO.
  • 00:05:08
    Few of you might say that the EPFO's coverage limit, it is INR 15,000.
  • 00:05:12
    But the voluntary coverage can be done on that.
  • 00:05:15
    It is taken care of in this scheme.
  • 00:05:17
    It is clearly stated that all those employees whose salary is up to INR 1L.
  • 00:05:23
    They can receive the benefit of this scheme.
  • 00:05:25
    That is If your basic salary or PF wage, If that is INR 1L.
  • 00:05:30
    So you will be covered in this.
  • 00:05:31
    The first installment of INR 15,000 will be directly given to the employee.
  • 00:05:36
    But, for the second installment,
  • 00:05:38
    To opt for that, the employee will have to complete a certain online financial literacy course.
  • 00:05:44
    Maybe the employee will be informed through this portal itself.
  • 00:05:48
    And it might be checked whether they have completed the video rate.
  • 00:05:51
    And there could have a test in the end, whether they have completed the test or not.
  • 00:05:55
    I believe it is a welcome initiative.
  • 00:05:57
    Now there is a risky condition, about the subsidy received in this.
  • 00:06:00
    It will need to be refunded If the employment ends within 12 months.
  • 00:06:06
    If it ends within 1 year.
  • 00:06:08
    And who will refund, the refund will be done by the employer.
  • 00:06:13
    That means, the benefit will be provided to the employee.
  • 00:06:15
    and who has to provide the refund If the employee leaves? The employer.
  • 00:06:18
    So what is my opinion about this scheme.
  • 00:06:20
    I think that this scheme will provide an additional liquidity of INR 15,000 to the employee.
  • 00:06:26
    But will the additional liquidity be provided for real?
  • 00:06:28
    But as far as I know, this benefit will be deposited in the employee's PF account,
  • 00:06:32
    which will stay in the PF account.
  • 00:06:34
    And If they leave the job after 1 year,
  • 00:06:37
    even then he can withdraw the amount.
  • 00:06:38
    Hence, liquidity will be given, but after sometime.
  • 00:06:41
    We will get to understand the details once this scheme is implemented.
  • 00:06:44
    Apart from this, 100% risk of the employers.
  • 00:06:48
    Assume the work is not upto the mark after 6 months.
  • 00:06:51
    Either the employer terminates the employee or the employee willfully resigns.
  • 00:06:57
    And it happens a lot in the case of freshers, that worked for 5-6 months and then left the job.
  • 00:07:01
    The benefit received in this case will have to paid by the employer entirely.
  • 00:07:06
    In a way, this cost is additional expense on the employer to remove the employee.
  • 00:07:11
    It could be possible that certain employers might write in their contract or bond,
  • 00:07:15
    that If you leave before 12 months, then you will have to pay INR 15,000 to us.
  • 00:07:20
    Let's see If that happens or not.
  • 00:07:21
    But If you want to watch a detailed video on Employment Bond.
  • 00:07:25
    The validity of Employment Bond and to what extent are it's terms and conditions valid as per the Indian Law?
  • 00:07:30
    Then you can click on the 'i' button and watch our video.
  • 00:07:32
    Let's head to Scheme 'B'.
  • 00:07:38
    Scheme B: Job creation in manufacturing.
  • 00:07:42
    This scheme will incentivise additional employment in the manufacturing sector.
  • 00:07:49
    The scheme is expected to benefit INR 30L youth.
  • 00:07:52
    The benefit received from this scheme will be for up to 4 years.
  • 00:07:56
    And will be granted to both employers and employees.
  • 00:08:00
    Partly to employee, partly to employer.
  • 00:08:02
    50% will be provided to the employee, 50% will be provided to the employer.
  • 00:08:06
    How much benefit will be provided?
  • 00:08:08
    24% will be provided in the first year.
  • 00:08:11
    24% of salary or wage.
  • 00:08:12
    In this case, there is 1L. I will mention that ahead.
  • 00:08:15
    But the benefit will be provided on 24% of INR 25,000.
  • 00:08:19
    That means, how much benefit will be provided.
  • 00:08:21
    If we derive 24% of INR 25,000,
  • 00:08:23
    it comes to INR 6,000.
  • 00:08:24
    That means, benefit of INR 3,000 will be given to the employee
  • 00:08:27
    and INR 3,000 benefit will be given to the employer.
  • 00:08:29
    In year 1 and 2, and in 3rd and 4th year.
  • 00:08:32
    Benefit of INR 4,000 and INR 2,000 will be received.
  • 00:08:34
    Pay attention that this subsidy is in addition to Scheme A.
  • 00:08:38
    That means, If INR 15,000 benefit is received through Scheme A.
  • 00:08:41
    Apart from that, this benefit will be given to the employees.
  • 00:08:44
    And this scheme will be done for up to 2 years.
  • 00:08:47
    That means, at the end of 2 years, If an employee enrols in this.
  • 00:08:50
    then after the passing of 365 + 365 days.
  • 00:08:54
    If an employee enrols on the last day, then he will receive benefits towards the end of 6th year.
  • 00:08:58
    Hence the benefit year has been given up to 6 years.
  • 00:09:02
    You know it's condition is a little tricky.
  • 00:09:04
    It's condition is that If there is a manufacturing unit,
  • 00:09:08
    hires substantial first time employees.
  • 00:09:12
    Hires first time employees in huge numbers.
  • 00:09:15
    They will receive this benefit.
  • 00:09:17
    It means there is no benefit in IT sector, no benefit in trading.
  • 00:09:21
    If you have a shop, then there is no benefit.
  • 00:09:23
    You will only get benefit in the manufacturing sector.
  • 00:09:26
    That means you will receive benefits in factories etc.
  • 00:09:28
    It could be possible that the factory is new.
  • 00:09:30
    If it's newly opened, then they can directly receive benefits for all employees.
  • 00:09:35
    But If there is a factory, which is operational since years.
  • 00:09:38
    What will happen in that case?
  • 00:09:39
    Then a condition is given for that too.
  • 00:09:41
    If that factory or manufacturing unit is a corporate entity.
  • 00:09:45
    A corporate entity means If it's a Private Limited or LLP (Limited Liability Partnership).
  • 00:09:49
    In that case, there is no criteria, they can simply gain the benefit.
  • 00:09:52
    But, If they are a non corporate entity.
  • 00:09:55
    It could be a partnership or a proprietorship.
  • 00:09:58
    So in that particular case, the company must have EPFO registration of a minimum of 3 years,
  • 00:10:03
    to be eligible for this scheme.
  • 00:10:05
    How many new employees should you hire to avail this scheme.
  • 00:10:08
    Employer must hire atleast the following number of previously non EPFO enrolled workers.
  • 00:10:14
    Since we are talking about freshers,
  • 00:10:16
    then freshers are not enrolled in EPFO.
  • 00:10:18
    Hence, it's written non-EPFO enrolled workers.
  • 00:10:21
    How many workers should you hire?
  • 00:10:22
    Either you hire 50 workers or 25% of baseline.
  • 00:10:27
    What is the meaning of baseline?
  • 00:10:28
    Your average worker of the previous year, the EPFO retrieves that.
  • 00:10:32
    Assume, on average, on certain months; there were 22, and on certain months there were 18.
  • 00:10:36
    On an average, you had around 20 workers.
  • 00:10:38
    Then your baseline will be fixed as 20.
  • 00:10:41
    More than 20, If you hire 25% additional workers.
  • 00:10:44
    That means If you hire more than 5 workers,
  • 00:10:47
    your company will be eligible for this benefit.
  • 00:10:50
    It's a simple condition, either you hire 50 employees...
  • 00:10:53
    or hire 25% additional employees than your baseline.
  • 00:10:57
    Whichever is the minimum amongst the two, that will be your eligibility criteria.
  • 00:11:01
    or will become the eligibility criteria for your establishment.
  • 00:11:04
    As per my assumption, If a new company is started during 2 years of this scheme.
  • 00:11:08
    If a new company is opened, then all the workers will receive this benefit.
  • 00:11:12
    Because their baseline is 0.
  • 00:11:14
    That means all the workers will get benefit.
  • 00:11:16
    Especially those workers who were not enrolled in EPFO.
  • 00:11:19
    There are certain additional conditions.
  • 00:11:21
    This 25% or 50 employees criteria.
  • 00:11:24
    This is what the employer needs to maintain.
  • 00:11:26
    Assume, the workers reduce from 50 to 48 or from 25% to 20%.
  • 00:11:30
    You will stop receiving benefit.
  • 00:11:32
    Whether it will restart or not, I can't say that.
  • 00:11:34
    Because, the previous schemes that were introduced, If you go below a certain criteria for once.
  • 00:11:38
    then in most cases, the benefit won't start again.
  • 00:11:41
    Your benefit will lapse in the future.
  • 00:11:43
    If it is reduced below a threshold in any month, then you will stop receiving the benefit.
  • 00:11:47
    And you might not receive it in the future.
  • 00:11:49
    The employee must directly work in an establishment.
  • 00:11:52
    If you are hiring an employee through a contractor, even then it's not acceptable.
  • 00:11:56
    And the wage limit that is given on up to INR 1L salary.
  • 00:12:01
    All the employees that are been hired will receive this benefit.
  • 00:12:04
    But you will receive this benefit upto INR 25,000.
  • 00:12:09
    Assume, employee's salary is INR 50,000 on which he is deducting his PF.
  • 00:12:13
    Even then he won't receive the benefit on his entire INR 50,000.
  • 00:12:16
    It won't happen that 24% of INR 50,000 will be given by the government.
  • 00:12:20
    No! Only 24% of INR 25,000 will be provided by the government.
  • 00:12:23
    The maximum benefit that will be granted in any month against one employee...
  • 00:12:27
    will be of INR 6,000.
  • 00:12:29
    Hence, the last criterion that is added, which was added in Scheme A.
  • 00:12:32
    If the employee leaves within 12 months,
  • 00:12:35
    then the entire money will be refunded by the employer.
  • 00:12:38
    Now the big question, which is still a question,
  • 00:12:41
    I will ask you. Maybe you have an idea.
  • 00:12:43
    A word is written here on top 'Incentive'.
  • 00:12:46
    Now, this word 'Incentive'.
  • 00:12:48
    Incentive is received when you are giving an additional amount above the salary.
  • 00:12:52
    Does this 24%....
  • 00:12:54
    When an employee works for the first time,
  • 00:12:56
    then 12% PF is deducted and 12% is deposited by the employer.
  • 00:13:00
    In total, it becomes 24%.
  • 00:13:02
    As this 24% is given by the government,
  • 00:13:05
    then 24% amount which wasn't deducted from the employee from his CTC.
  • 00:13:10
    Will the entire amount be given by the employer in hand?
  • 00:13:13
    Or else the benefit is only such,
  • 00:13:16
    that the amount is incurred by the government instead of the employer.
  • 00:13:20
    It remains to be seen.
  • 00:13:21
    Because the previous COVID scheme of ABRY, in that,
  • 00:13:24
    The amount that is given by the government must not be deducted from the employee.
  • 00:13:28
    and the additional amount needs to be provided to the employee.
  • 00:13:29
    That means, employee's in hand salary increased.
  • 00:13:32
    In this case, 24% in hand salary will increase.
  • 00:13:35
    or only the employer will benefit.
  • 00:13:38
    And all this money will be deposited to PF by the government.
  • 00:13:42
    It remains to be seen.
  • 00:13:43
    Let's head to the last scheme, which is previously covered as well as fresh, both for the employees.
  • 00:13:52
    Scheme C: Support to Employers.
  • 00:13:55
    This Employer focused scheme will cover all additional employment,
  • 00:14:01
    within a salary of INR 1L per month.
  • 00:14:04
    The government will reimburse upto INR 3,000 per month,
  • 00:14:08
    for 2 years towards the EPFO contribution, for each additional employee.
  • 00:14:15
    Under this scheme, If an employer hires new employees,
  • 00:14:19
    then the employer's share of INR 3,000.
  • 00:14:22
    Upto INR 3,000 will be provided by the government.
  • 00:14:24
    As you know, in EPFO, 12% is the employee's contribution
  • 00:14:27
    and employer also has 12% contribution.
  • 00:14:30
    This contribution of 12% which the employer used to do.
  • 00:14:33
    Instead of the employer, he will receive the subsidy directly.
  • 00:14:37
    And the amount will reduced in the challan. Since it's coming from directly from the government.
  • 00:14:41
    Upto when will you receive the benefit? Up to 2 years.
  • 00:14:44
    For that newly hired employee.
  • 00:14:46
    But another condition has been added for bigger employers.
  • 00:14:49
    If a company hires more than 1,000 new employees.
  • 00:14:53
    In that case, the benefit will be granted for 4 years instead of 2.
  • 00:14:58
    And based on which rate?
  • 00:14:59
    Based on the rate mentioned in B.
  • 00:15:01
    That means, in the first 2 years, 12% of salary.
  • 00:15:04
    You will get upto INR 3,000.
  • 00:15:05
    And in the 3rd and 4th year, you will get 8% to 4%.
  • 00:15:08
    Upto INR 2,000 - INR 1,000 per employee per month.
  • 00:15:12
    Now it's applicability criteria is a little relaxed.
  • 00:15:15
    It is similar to the eligibility criteria in PMRPY.
  • 00:15:19
    If it's a small company, i.e. If there are 50 or lesser employees.
  • 00:15:22
    Then as per their baseline. It means compared to employees in the previous year,
  • 00:15:26
    If they hire 2 more employees, then they will be eligible for this scheme.
  • 00:15:30
    And If it's a big company, i.e. If there are more than 50 employees.
  • 00:15:33
    On their baseline, If they hire 5 more employees,
  • 00:15:37
    then they will be eligible.
  • 00:15:38
    The most important thing is all those employees will receive benefits,
  • 00:15:42
    whose PF wage is upto INR 1L.
  • 00:15:45
    It means If you want you can enrol in PF of INR 1L.
  • 00:15:49
    If you enrol, then your employer's share of INR 3,000, will be provided by the government.
  • 00:15:54
    Your basic salary could be INR 1L.
  • 00:15:56
    It's employer share of 12% becomes INR 12,000.
  • 00:15:59
    In this case, the government gives INR 3,000.
  • 00:16:02
    And the remaining INR 9,000 will have to be deposited by your employer.
  • 00:16:05
    But you will be eligible in the scheme.
  • 00:16:07
    The government has made it clear that it's not necessary for a new entrant in this scheme.
  • 00:16:12
    But it could be possible that he previously had a number in EPFO.
  • 00:16:16
    A UAN (Universal Account Number) number might be generated and he might have worked somewhere else.
  • 00:16:19
    If they hire such an employee,
  • 00:16:21
    even then they can get the benefit.
  • 00:16:23
    It could be possible that he used to work previously in this company.
  • 00:16:26
    He might have left and joined the company again.
  • 00:16:28
    He must receive this benefit.
  • 00:16:30
    The joining criteria of this scheme will be of 2 years.
  • 00:16:33
    And the benefit period will be for 6 years.
  • 00:16:36
    For companies generating more than 1000+ employment up to 6 years.
  • 00:16:39
    And If they have generated less than 1000 employment, then up to 4 years.
  • 00:16:42
    Now, let's talk about some problems here.
  • 00:16:48
    Firstly, what problems can the employee face?
  • 00:16:50
    Based on our experience with PMRPY and ABRY.
  • 00:16:54
    On both cases, until we received the benefit.
  • 00:16:57
    until then most of the employees who received the benefit.
  • 00:17:00
    Some restrictions are levied on their PF amount withdrawal.
  • 00:17:04
    Once the scheme is over, you can withdraw the money.
  • 00:17:06
    But during the scheme, you can't withdraw the money.
  • 00:17:10
    Government does it to save themselves from rigging.
  • 00:17:13
    Few people fill their relative's name in this scheme so that they get the benefit.
  • 00:17:18
    By not giving the salary, the benefit that the government is providing, they use that.
  • 00:17:22
    The government might have introduced schemes to stop these schemes.
  • 00:17:25
    There is another disadvantage here.
  • 00:17:27
    Few employees have been locked.
  • 00:17:29
    And for the longest time, certain employees didn't know the reason.
  • 00:17:32
    Now it's understood that it was locked because,
  • 00:17:35
    certain employees were employed somewhere else or their salary was more than INR 15,000.
  • 00:17:40
    Now, it won't be unlocked until an inspector inspects it.
  • 00:17:44
    And until he inspects and verifies it.
  • 00:17:46
    Such employees can't claim for their refund.
  • 00:17:49
    They can't take advance or do anything else.
  • 00:17:51
    We have seen such cases in the past,
  • 00:17:52
    whose EPFO's claim amount has been stuck for several years.
  • 00:17:56
    Employer faces certain issues too.
  • 00:17:58
    Firstly, under Scheme A, the entire risk is faced by the employer.
  • 00:18:02
    Employee is receiving INR 15,000.
  • 00:18:04
    But If he leaves before 12 months,
  • 00:18:06
    then who will refund the INR 15,000? The employer will.
  • 00:18:08
    Firstly, for the employer, the employee has left the job.
  • 00:18:12
    Additionally, the employer has to pay INR 15,000. It's a double risk for him.
  • 00:18:15
    The second problem is whoever ABRY's benefit, mostly inspection is conducted in the company.
  • 00:18:20
    And a lot of detailing is asked in the inspection.
  • 00:18:22
    It builds a fear in the employer.
  • 00:18:25
    All these things are being asked after asking for the benefit.
  • 00:18:28
    After this, Aadhar number of all the employees are being asked during the inspection.
  • 00:18:32
    Aadhar number has already been uploaded on the PF portal.
  • 00:18:35
    And there should be a facility that If someone needs...
  • 00:18:39
    If an inspector or an authority needs, then they can download it.
  • 00:18:41
    They should not harass the employer in any way.
  • 00:18:44
    Due to all of these situations, there is a lot of fear in the industry.
  • 00:18:49
    To opt for any of the government schemes.
  • 00:18:51
    So I request all the establishments who are registering in this scheme.
  • 00:18:56
    Please keep your compliance level super high.
  • 00:19:00
    Properly maintain your employee records.
  • 00:19:02
    And If you need any help...
  • 00:19:03
    Then my parental company for the past several years,
  • 00:19:06
    of more than 500 companies, has been managing their EPFO.
  • 00:19:10
    You can contact them on the following email id: pijain24@gmail.com
  • 00:19:12
    So guys, how did you like the video, tell us in the comments below.
  • 00:19:14
    What do you need the video on?
  • 00:19:16
    Do you want it on the Internship scheme or the government solar subsidy scheme?
  • 00:19:20
    Tell me in the comment below.
  • 00:19:22
    And If you are an HR or a payroll consultant, if you are watching our video.
  • 00:19:26
    We have 3 amazing courses for them,
  • 00:19:28
    which have helped 1000 HRs and payroll consultants.
  • 00:19:32
    Payroll Processing, PF Compliance, and ESI Compliance.
  • 00:19:36
    I will mention the link to those courses and a special discount code in the comment below.
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