Decoding the Scheme
The policy at the heart of this discussion is the Aatmanirbhar Bharat Rojgar Yojana (ABRY), likely the scheme referred to in the headline. Launched in late 2020 as a post-pandemic recovery measure, ABRY was designed to incentivise employers to create
new jobs. It did this by having the government cover the provident fund contributions for new, low-wage employees for two years. For companies with up to 1,000 employees, the government paid both the employee's (12%) and the employer's (12%) share of contributions to the Employees' Provident Fund (EPF). For larger firms, it covered the employee's 12% share. The goal was to reduce the financial burden on companies, encouraging them to hire formal workers with social security benefits.
Where Does the 72 Lakh Figure Come From?
The number is based on the scheme's official target. The government initially projected ABRY would generate 58.5 lakh new jobs but later revised its estimate, stating that approximately 71.8 lakh employees were expected to benefit. Government data from mid-2022 showed that total registrations had even surpassed the target, reaching over 75 lakh. These individuals were new hires earning less than ₹15,000 a month who were brought into the formal workforce and registered with the Employees' Provident Fund Organisation (EPFO) between October 2020 and March 2022. The figure represents a significant expansion of the formal workforce, at least on paper.
Question 1: Is Enrolment the Same as Access?
This is the most critical question. While enrolling millions in the EPF system is a major step, accessing those funds can be a different story. In recent years, data has shown that a high percentage of EPF withdrawal claims are rejected—sometimes as many as one in three final settlement claims. Reasons range from system glitches and bureaucratic delays to data mismatches in KYC details. For many workers, especially those with low financial literacy, navigating the complexities of the EPFO portal, updating details, or merging old accounts is a significant hurdle. Being covered by a social security scheme is one thing; being able to easily access your own money in a time of need is another entirely.
Question 2: What Happens After the Subsidy Ends?
The ABRY scheme provided a subsidy for a 24-month period for each new employee. A key question is whether these jobs are sustainable without the government incentive. After the two-year window closes, employers become responsible for their full statutory contribution to the EPF. Will companies that hired workers because of the subsidy continue to retain them on the formal payroll? The long-term success of the scheme depends not just on how many jobs were created, but on how many of those jobs remain formal and secure after the financial support is withdrawn. The transition from a subsidised to a non-subsidised model will be the true test of the scheme's impact on sustainable formal employment.
Question 3: Who Is Being Left Out?
While ABRY focused on boosting formal employment, it's important to remember that it only applies to establishments registered with the EPFO. This inherently excludes India's massive informal workforce, which constitutes the vast majority of the country's labour market. These workers—including daily wage labourers, gig economy workers, and employees of small, unregistered businesses—have no access to such employer-sponsored social security schemes. While formalising 72 lakh jobs is a noteworthy achievement, it represents a fraction of the total workforce that remains without a formal safety net like a provident fund or pension.
