This scheme is aimed at incentivizing creation of new jobs during the Covid 19 recovery phase. The scheme will benefit new employees i.e. who were not previously registered with the EPFO previously or have lost employment between March 1 and September 30, 2020.
And establishments that will be covered will be who extend employment between October 1 and June 30, 2021 and will be applicable for 2 years.
The central government for the employers who have less than or equal to 1000 employees, central government will bear 12% of the employer as well as 12% of employee's contribution towards provident fund account of the employee.
For employers, employing over 1000 people, only employee's contribution i.e. 12% of wages shall be extended as subsidy by the union government.
And for the upfront credit of this amount, new employee's UAN or EPFO account has to be Aadhaar seeded.