The package will accord informal sector workers social safety net, besides boosting job creation, it said.
The Cabinet Committee on Economic Affairs on Wednesday extended the larger government-sponsored EPF benefits, currently available under the Pradhan Mantri Rozgar Protsahan Yojana for new employees in the textiles and garment sector, to all the sectors. This was a Budget promise.
“The government of India will now contribute the employer’s full admissible contribution for the first three years from the date of registration of the new employee for all the sectors including existing beneficiaries for their remaining period of three years,” an official release said.
The package will accord informal sector workers social safety net, besides boosting job creation, it said. Under the special package for the textile and garment sector unveiled by the government in June 2016, a crucial component was an undertaking that the government will bear the entire 12% employer’s contribution to the retirement fund for new employees for the first three years — against 8.33% for other sectors – under the Pradhan Mantri Rozgar Protsahan Yojana.
The scheme’s objective was to encourage job creation. A cumulative increase of $30 billion in export of textiles and garments and Rs 74,000-crore investments in the employment-intensive sector over three years, were envisaged.