Atmanirbhar Bharat Rozgar Yojana (ABRY)

Background and Context

Whenever we study any government scheme, the first question should be: Why was this scheme needed?

👉 After the COVID-19 pandemic, India’s formal sector faced a huge employment crisis. Many workers, especially in the low-wage bracket, lost their jobs. At the same time, industries and firms were struggling to restart operations.

• To deal with this, the government launched the Aatmanirbhar Bharat 3.0 package.
• One major component of this package was the Atmanirbhar Bharat Rozgar Yojana (ABRY)—a scheme to encourage job creation and bring back those who lost jobs during the pandemic. It was launched in October 2020

Thus, the scheme is rooted in the idea of reviving the formal labour market.

Nature of the Scheme

• Type: Central Sector Scheme (funded fully by the Union Government).
• Implementing Agency: Employees’ Provident Fund Organisation (EPFO).
• Mechanism: The government reduces the financial burden of employers by contributing to the EPF (Employees’ Provident Fund).

This means: The government is indirectly paying part of the salary-related costs, making it easier for firms to hire new workers.

Objective

The scheme has a dual objective:

1. To incentivise employers (EPFO-registered firms) to give fresh jobs.
2. To re-employ people in the low-income group (earning less than ₹15,000 per month) who lost their jobs during the pandemic.

So, the purpose is not just new job creation but also rehabilitation of retrenched workers.

Eligibility

The scheme clearly defined who could benefit:

a) Establishments (Employers)

• All EPFO-registered establishments.

b) Employees

• New hires earning less than ₹15,000/month, appointed between Oct 1, 2020 and June 30, 2021.
• Those who lost jobs during March 1 – September 30, 2020 and got re-employed.

⚠️ Important condition: The new employee must have Aadhaar-seeded UAN (Universal Account Number) to ensure transparency.

Benefits

Here lies the real incentive:

• For establishments with up to 1000 employees:
  • The government pays both the employer’s and employee’s share (12% each) of EPF contribution.
• For establishments with more than 1000 employees:
  • The government pays only the employee’s share (12%).

📌 Duration: The benefit is available for 24 months from the date of registration of the new employee (up to March 2024).

📌 Mode of Payment: Directly credited to the UAN of eligible employees, managed by EPFO.

Exclusions

The scheme avoids duplication of benefits. So, employees already covered under:

• Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), or
• Pradhan Mantri Paridhan Rojgar Protsahan Yojana (PMPRPY)

…are not eligible for ABRY.

Accountability

The scheme also includes a monitoring mechanism.

• EPFO is tasked to conduct a Third-Party Evaluation of the scheme within three months of its closure.
• This ensures transparency and helps assess its effectiveness.

Summary in Simple Words

The Atmanirbhar Bharat Rozgar Yojana is like the government telling employers:

“If you hire new workers (especially low-income ones) or re-hire those who lost jobs in COVID times, we will share your burden by paying into their EPF accounts. This will reduce your cost and encourage you to expand your workforce.”