New Delhi, Dec 10 (IANS): The Union Cabinet on Wednesday gave its approval for the Atmanirbhar Bharat Rojgar Yojana to boost employment in the formal sector and incentivise the creation of new employment opportunities during the Covid recovery phase under Atmanirbhar Bharat Package 3.0.

The Cabinet has approved an expenditure of Rs 1,584 crore for the current financial year and Rs 22,810 crore for the entire scheme period -- 2020-2023.

Under the scheme, the Centre will provide a subsidy for two years in respect of new employees engaged on or after October 1, 2020 and up to June 30, 2021.

The government will pay both 12 percent employees' contribution and 12 percent employers' contribution i.e. 24 per cent of wages towards EPF in respect of new employees in establishments employing up to 1,000 employees for two years.

Further, the Centre will pay only the employees' share of EPF contribution, 12 percent of wages in respect of new employees in establishments employing more than 1,000 employees for two years.

An employee drawing a monthly wage of less than Rs 15,000 who was not working in any establishment registered with the Employees' Provident Fund Organisation (EPFO) before October 1, 2020 and did not have a Universal Account Number or EPF Member account number prior to October 1, 2020 will be eligible for the benefit.