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Pradhan Mantri Rozgar Protsahan Yojana (PMRPY)

Topics Covered:

  1. Government policies and their performance.
  2. Schemes for the vulnerable sections of the society.
  3. Employment and issues related to inclusive growth.


Pradhan Mantri Rozgar Protsahan Yojana (PMRPY)


What to study?

For Prelims: Features of the scheme, beneficiaries.

For Mains: Significance and performance of the scheme.


Context: The total number of employees benefited under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) from 01.04.2016 to 31.03.2019 is 1.18 crore.


About Pradhan Mantri Rojgar Protsahan Yojana:

The scheme “Pradhan Mantri Rojgar Protsahan Yojana” (PMRPY) was announced in the Budget for 2016-17.

The objective of the scheme is to promote employment generation.

The scheme is being implemented by the Ministry of Labour and Employment.

Under the scheme employers would be provided an incentive for enhancing employment by reimbursement of the 8.33% EPS contribution made by the employer in respect of new employment.

The PMRPY scheme is targeted for workers earning wages upto Rs. 15,000/- per month.


Significance of the scheme:

PMRPY has a dual benefit –

  1. The employer is incentivised for increasing the employee base in the establishment through payment of EPF contribution of 12% of wage, which otherwise would have been borne by the employer.
  2. A large number of workers find jobs in such establishments.


A direct benefit of the scheme is that these workers have access to social security benefit through Provident Fund, Pension and Death Linked Insurance.