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Issues with the Aatmanirbhar Bharat Rojgar Yojana (ABRY)

GS Paper 2

 Syllabus: Government policies and intervention

 

Source: ET

Context: According to the latest government data, the Aatmanirbhar Bharat Rojgar Yojana (ABRY) scheme has fallen short of its employment generation targets.

 

About ABRY:

AspectAatmanirbhar Bharat Rojgar Yojana (ABRY)
Launch DateDecember 2020 (under the Ministry of Labour & Employment)
ObjectiveBoost formal employment generation post-COVID-19 disruptions
Target AudienceNew employees earning less than ₹15,000 per month in EPFO-registered companies
Implementation AgencyEmployees’ Provident Fund Organisation (EPFO)
Contribution ExemptionEligible employees do not need to contribute to PF and pension for 2 years
ReimbursementThe government reimburses either both employee and employer contributions (24% of wages) or only employee contributions (12% of wages)
Eligibility CriteriaEmployees hired until March 2022, and those who lost jobs between March 1, 2020, and September 30, 2020, earning less than ₹15,000 per month
Enrolment DataAs of July 22, 2023: over 6 million  (6 lakhs) enrolments
Top 10 States in Employment GenerationMaharashtra, Tamil Nadu, Gujarat, Karnataka, Uttar Pradesh, Haryana, Rajasthan, Telangana, Delhi, Madhya Pradesh

 

Issues and challenges associated with the Aatmanirbhar Bharat Rojgar Yojana (ABRY):

  • Shortfalls in Enrollment and Job Creation: Enrollment figures indicate that fewer eligible employees have participated in the scheme than anticipated.
  • Disbursement Delays: The disbursements under the scheme have lagged behind the set targets, with only about 42% of the initial targeted expenditure utilized so far.
  • Limited Impact on Employment Generation: The scheme’s outcomes suggest that it has not been as effective in generating employment as envisioned.
  • Complexity and Eligibility Criteria: The complexity of eligibility criteria is creating confusion among eligible employees, employers, and implementing agencies.
  • Geographical Disparities: The concentration of beneficiaries in certain states indicates geographical disparities in employment generation.
  • Lack of Adequate Promotion: The limited awareness and promotion of the scheme might be contributing to the lower enrollment figures.

 

Conclusion:

While the Aatmanirbhar Bharat Rojgar Yojana (ABRY) has encountered certain challenges in meeting its initial targets for job creation and disbursements, it has nonetheless contributed to formal employment generation during a challenging economic period post-COVID-19.

 

Insta links:

Atmanirbhar Bharat Rojgar Yojana (ABRY)

 

Mains Links:

Discuss the need for and benefits of such Programmes.