Under the Self-Reliant India Employment Scheme, the government had announced a subsidy in the provident fund payment, which is ending on June 30.
Between February 1 and May 31, 2.53 crore people became unemployed due to the second wave of the epidemic. On an average, 2.4 jobs were lost every second, according to data from the Center for Monitoring Indian Economy. The rise in unemployment at such a rapid rate is worrying.
To promote employment, the Center had announced a package of Rs 22,810 crore last year. Under the Self-Reliant India Employment Scheme, the government had announced a subsidy in the provident fund payment. The scheme of provident fund contribution for new employees started last year should be continued.
Under the scheme, the center invests the PF of the share of the employee and the employer. This scheme should not end on June 30. This scheme was started only for new employees.
By giving this benefit to the employer, the expenditure on the employees also reduced. Its goal was to increase the opportunities for blue-collar jobs. Under this scheme, the Center is giving 12 percent of the Provident Fund contribution of both the employee and the employer. This scheme is applicable from 1 October 2020 to 30 June 2021.
For such companies where more than 1000 people are employed, the government is giving contribution on behalf of the employee. At present, this benefit is available to the employees getting up to Rs 15,000.
It is worth noting that this plan was announced when everyone expected that the worst phase of the epidemic had passed and the economy was now on the path of recovery. But the second wave, and with the threat of the third wave ahead, has created great problems for the salary class.
This is the reason why the government should, if possible, continue the subsidy of EPF payment even further. Also, efforts should be made to increase the income limit of Rs 15,000 to Rs 20,000 so that more people benefit. This scheme should continue till the end of this financial year. If it is successful in creating employment opportunities, then it can be implemented on a larger scale in the future.