The Aatmanirbhar Bharat Rozgar Yojana (ABRY) has surpassed expectations by generating more employment opportunities than initially projected, demonstrating its effectiveness in encouraging job creation and supporting recovery endeavors amid the Covid-19 pandemic.
Understanding the Aatmanirbhar Bharat Rozgar Yojana (ABRY)
Launched on October 1, 2020, ABRY was developed with the primary aim of stimulating the creation of new job roles. It achieved this by providing financial assistance to employers of enterprises registered with the Employees’ Provident Fund Organisation (EPFO). The scheme is designed specifically to incentivise the employment of individuals, especially those who lost their jobs due to the pandemic.
This scheme covers both employee and employer contributions, equivalent to 24% of earnings, for businesses employing up to 1000 workers. However, for larger firms employing over 1000 employees, the scheme only covers the employee’s EPF payments, which make up 12% of salaries.
ABRY’s Achievements
As of July 31, 2023, the ABRY has proved successful and surpassed its initial employment generation target by enrolling approximately 7.58 million new employees. This achievement signifies the pivotal role the initiative has played in reviving the job market, thereby contributing to the broader economic recovery during the pandemic.
Government Initiatives to Drive Employment Opportunities
Several other initiatives have been launched by the government to foster employment opportunities. These include programmes like Support for Marginalized Individuals for Livelihood and Enterprise (SMILE), PM-DAKSH (Pradhan Mantri Dakshta Aur Kushalta Sampann Hitgrahi), Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the Start-Up India Scheme, and Rozgar Mela.
Understanding Disguised Unemployment
Disguised unemployment refers to a situation where the marginal productivity of labor is zero. This principle was tested in the UPSC Civil Services Examination in 2013, and continues to be relevant in understanding the layers of employment and unemployment dynamics in the country.
Eligibility for “Mahatma Gandhi National Rural Employment Guarantee Act”
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) aims to provide at least 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. In the 2011 UPSC Civil Services Examination, it was clarified that adult members of any household are eligible to benefit from this Act, not just those from specific social or economic categories.