New Delhi - The Cabinet Committee on Economic Affairs has approved enhancing the scope of Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).
Under the scheme, the government 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 sectors including existing beneficiaries.
"The informal sector workers would get social safety net and there would be more job creation," an official statement said.
Started in August 2016, under the PMRPY scheme, the government so far pays the 8.33% contribution of employers to the Employees' Pension Scheme (EPS) in respect of new employees who have joined on or after April 1, 2016 and with salary up to Rs 15,000 per month.
The government said that till now, the scheme has added about 31 lakh beneficiaries to the formal employment involving an expenditure of more than Rs 500 crore.
On one hand, the employers are incentivized for increasing the employment base of workers in the establishments, and on the other hand a large number of workers will find jobs in such establishments, it said.
"A direct benefit is that these workers will have access to social security benefits of the organised sector," it added.