Industry body demands restart of PMRPY scheme

To give a fillip to slowdown-hit small scale units of Rajkot, the Rajkot Chamber of Commerce and Industry (RCCI) has demanded restarting of the Pradhan Mantri Rojgar Protsahan Yojna (PMRPY), which has been under suspension since March 31.

This PMRPY scheme, related to the Employment Provident Fund (EFP), applies to units that employ 20 or more employees. Under this scheme, for the first three years, the government will pay 12 percent on behalf of the unit owners in the EPF account of the employees from whom 12 percent basic pay were cut to be deposited to the EPFO for their future benefit. From the fourth year onwards, it becomes the responsibility of the unit owners.

Image result for Industry body demands restart of PMRPY schemeAccording to industry experts, prior to the introduction of the scheme, owners were reluctant to show the actual number of employees on their record books. EPFO data in Gujarat reveals that after the scheme, nearly 1.76 lakh new members had registered in 2017, while in 2018-19 nearly 5.55 lakh new members got registered.

Vice president of RCCI Parth Ganatra said, “There are many units that are without work and are facing hardship in paying salaries to their employees. Among these, the small scale units are facing maximum heat of the slowdown. In such a situation, the continuation of this scheme will benefit both the owners and the employees. We have made a representation to the government asking it not to discontinue the scheme at least in this crucial time.”

The RCCI also apprised the government that the small scale units generate the highest number of employments and the PMRPY scheme was helping boost more employment avenues.

Parag Dodia, an advocate practising labour law in Rajkot, said, “Of my 1,400 clients, nearly 350 were beneficiaries of this scheme. This scheme may help in reviving many sick units especially during the slowdown.”

Regarding the cost to company (CTC) model, in which unit owners deduct both parts of EPF from employees' salaries, Dodia said that in smaller units, where the maximum salary level is between Rs 12,000 and 15,000, deduction of 24 percent from an employee's basic salary isn't possible

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