Maarg Manthan · Topic 7.7

Atmanirbhar Bharat Rojgar Yojana

Current Affairs & Government Schemes › Employment and Livelihood Schemes · Topic 7.7

The Atmanirbhar Bharat Rozgar Yojana (ABRY) was an employment incentive scheme of the Ministry of Labour and Employment, launched on 1 October 2020 as part of the Atmanirbhar Bharat Abhiyaan 3.0 package after the COVID-19 shock. It paid the Employees Provident Fund contribution of new hires, through the Employees Provident Fund Organisation, for 24 months. In establishments with up to 1,000 employees the Government paid both the employee and employer share of 12 per cent each, and in larger ones only the employer share. It covered workers earning below Rs 15,000 a month and ended on 31 March 2023, with about 60 lakh beneficiaries reported.

5 min read · UPSC Prelims · Current Affairs & Government Schemes · Employment and Livelihood Schemes

At a Glance

Ministry Labour and Employment
Launched 1 October 2020
Package Atmanirbhar Bharat Abhiyaan 3.0
Benefit period 24 months per new employee
Ended 31 March 2023
Exam link UPSC Prelims, Current Affairs and Government Schemes: Employment and Livelihood Schemes

Where Does It Fit?

This is the seventh topic of the macro on employment and livelihood. It is the pandemic-era successor of the older payroll incentive and the model that led to the new Employment Linked Incentive scheme. Previous topic: Garib Kalyan Rojgar Abhiyaan. Next topic: Start-Up Village Entrepreneurship Programme (SVEP).

How Did ABRY Work?

Feature	Detail
Launch	1 October 2020, under the Atmanirbhar Bharat Abhiyaan 3.0 stimulus announced in November 2020
Aim	Create formal jobs and restore those lost during the pandemic, and bring more workers into social security
Beneficiaries	New employees who joined an establishment registered with the EPFO and earned less than Rs 15,000 a month, and workers who lost jobs between 1 March and 30 September 2020 and were re-employed
Benefit for small employers	For establishments with up to 1,000 employees, the Government paid 24 per cent of wages, the employer and employee shares, for 24 months
Benefit for large employers	For establishments with more than 1,000 employees, the Government paid only the 12 per cent employee share for 24 months
Registration	Employers registered the new hires through the EPFO portal and the worker needed a Universal Account Number linked with Aadhaar
Outlay	About Rs 22,800 crore up to 2023-24, as approved by the Union Cabinet, with the scheme closed on 31 March 2023

How Is ABRY Different From PMRPY and the New ELI Scheme?

From PMRPY: The earlier scheme paid only the employer share for three years, as in Pradhan Mantri Rojgar Protsahan Yojana (PMRPY). ABRY paid both shares for small firms but for only 24 months
Wage cut-off: Both used the Rs 15,000 wage ceiling, which matches the statutory EPF limit
Relief angle: ABRY also covered people who had lost jobs in the lockdown, which PMRPY did not
Results: Government figures reported that about 60 lakh beneficiaries had been covered by the end of the scheme in March 2023. Treat this as a reported figure
New scheme: The Employment Linked Incentive scheme, named Pradhan Mantri Viksit Bharat Rozgar Yojana, covers jobs created from 1 August 2025 to 31 July 2027 with an outlay of Rs 99,446 crore
Design change: The new scheme pays first-time employees directly and pays employers separately, unlike ABRY which paid provident fund shares

What Else Should You Remember?

Pandemic package: The Atmanirbhar Bharat package began in May 2020 with about Rs 20 lakh crore and later parts added sector-specific measures
Emergency Credit Line: The Emergency Credit Line Guarantee Scheme was another part of the package for micro and small enterprises, as in Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
Link with EPFO: ABRY depended on the EPFO database, so its reach was limited to formal enterprises
Contribution mechanics: The Government credited the money into the provident fund account of the employee, so the worker saw the amount as retirement savings
Registration window: The last date for registration of establishments was extended from June 2021 to March 2022
Eligible employees: Those who had no earlier Universal Account Number or who did not draw wages from an EPFO-covered job before 1 October 2020
Exclusions: Employees who earned above the wage ceiling did not qualify, and an employer could not claim for existing staff
Related: The new law on social security brings gig and platform workers into the net, which is a separate issue
Uptake: Uptake was reported to be good in the first year after the job losses were reversed and the economy recovered
Evaluation concern: As with other hiring subsidies, the share of jobs that were truly new and did not replace existing hires is not known
Exam trap: ABRY is a past scheme, and questions on the present should mention that it closed in March 2023

Why Does It Matter for the Exam?

Date and ministry: 1 October 2020, Labour and Employment
Package: Atmanirbhar Bharat Abhiyaan 3.0
Benefit: 24 months of EPF share payment
Agency: Employees Provident Fund Organisation
Common errors: Mixing it with the earlier PMRPY or the general Atmanirbhar Bharat package of May 2020

As an analytical point, ABRY was a crisis tool that moved fast through an existing database. The lesson for later schemes is that rapid roll-out needs simple registration, but outcome data on net new jobs should be published to judge value for money.

Why Is This Topic Important?

Facts Date, ministry and benefits
Chain PMRPY, ABRY and ELI
Package Atmanirbhar Bharat 3.0

What Came Next?

The next topic covers the sub-scheme that supports village-level start-ups. Next topic: Start-Up Village Entrepreneurship Programme (SVEP).

Key People and Terms

ABRY Employment incentive of 2020
UAN Universal Account Number
Establishment Employer registered with EPFO
Employee share 12 per cent of wages from the worker
Employer share 12 per cent of wages from the firm

Exam Corner

Points to Remember

Launched: 1 October 2020.
Benefit: 24 months.
Wage limit: Rs 15,000.
Ended: 31 March 2023.
Agency: EPFO.

Do Not Confuse With

ABRY and PMRPY Pandemic-era scheme versus the 2016 scheme
ABRY and Atmanirbhar Bharat Abhiyaan One employment scheme versus the full stimulus package
ABRY and the ELI scheme Provident fund share payment versus direct payment to first-time employees

Memory Hook

Twenty-four months, twelve plus twelve, below fifteen thousand: ABRY pays the provident fund of the new hire.

Mains Angle

Questions ask about the effects of relief packages on jobs. These points give a balanced frame.

Merits Fast use of the EPFO database and relief to job losers
Limits Formal sector only and unknown share of net new jobs
Way forward Simple claims, outcome data and linkage to skilling

A Question You May Face

An original practice question, not a past paper question.

“Discuss the objectives and limitations of the Atmanirbhar Bharat Rozgar Yojana and explain how later schemes have changed the design of employment incentives.”

How to Answer

Introduce ABRY, date and aim.
Features Shares paid and eligibility.
Limits Formal only and net jobs unknown.
Way ELI design, simple claims, outcome data.

GS Relevance

Prelims: launch, ministry, rates, eligibility, end date. GS Paper 3: employment, formalisation, pandemic recovery package. GS Paper 2: government policies and interventions.

Frequently Asked Questions

What was the Atmanirbhar Bharat Rozgar Yojana?

ABRY was an employment incentive scheme of the Ministry of Labour and Employment, launched on 1 October 2020 under the Atmanirbhar Bharat Abhiyaan 3.0 package. It paid provident fund contributions of new hires for 24 months through EPFO, and it closed on 31 March 2023 after about 60 lakh beneficiaries were reported.

Who was eligible under ABRY?

New employees who joined EPFO-registered establishments and earned less than Rs 15,000 a month were eligible, and so were workers who lost jobs between 1 March and 30 September 2020 and found new work. Employers could not claim for staff who were already on their rolls before the scheme began.

How much did the Government pay under ABRY?

For establishments with up to 1,000 employees, the Government paid 24 per cent of wages, which is the 12 per cent employer share and the 12 per cent employee share, for 24 months. For larger establishments with more than 1,000 employees, it paid only the 12 per cent employee share.

How is ABRY different from PMRPY?

PMRPY began in 2016 and paid the employer contribution for three years. ABRY began in October 2020, paid both shares for small firms for 24 months and covered those who lost jobs in the lockdown. Both used EPFO and the Rs 15,000 wage ceiling, and ABRY took over new registrations.

Is ABRY still available?

No. ABRY closed on 31 March 2023 and no fresh registrations are taken. The Employment Linked Incentive scheme, named Pradhan Mantri Viksit Bharat Rozgar Yojana, now supports jobs created between 1 August 2025 and 31 July 2027, with payments to first-time employees and to employers.

PYQ Practice — Statement Analysis

1 ABRY was launched on 1 October 2020.

True

It was part of Atmanirbhar Bharat Abhiyaan 3.0.

2 ABRY is implemented by the Ministry of Finance.

False

The Ministry of Labour and Employment runs it through EPFO.

3 ABRY covered new employees earning less than Rs 15,000 a month.