Pradhan Mantri Rojgar Protsahan Yojana

Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) [Registraion, Minitry, Notification]

In the recent times we have seen a lot of programmes to boost employment in the country. Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) is just one of those. The scheme was launched on August 2016.

Pradhan Mantri Rojgar Protsahan Yojana

Objectives of PMRPY

  • As the name states the objective of this Yojana is to strengthen the employment and encourage the youths to pursue skills to acquire a job in the country.
  • However the scheme does not directly employ people and neither is it like a placement programme, but it does create more opportunities for the youth to find employment.
  • Basically the idea is that the government will provide incentives to the recruiters so that they employ more people and this way the high rate of unemployment can be fought.

Facilities for the employees

The facilities for the employees will be that they will be able to get better employment opportunities. Definitely as per the directions of the government, more employment opportunities will have to be created by the firms. It will affect the books the firms keep. Also, they might be regularized. But overall the labour market regulation will be balanced.

One of the things that are to be noted here is that India is a large country with a wide range of wage disparity. Not everyone is employed by a big firm and not everyone has the same wage rate. Therefore it is important that the aid through this scheme reaches the right people. If all goes well then this is what will happen because as per the directions, the employees who earn up to 15000 per month will be benefitted under this scheme.

This means that any new or old employee who is getting up to Rs. 15000 nominal wage will receive an additional 8.33% of the wage in Wage Pension Scheme on behalf of their employers. This amount will be paid for the first three years of employment.

Present work force scenario

It is a well known fact that due to the gender disparity there is a lot of gap in the workforce. Also employment of the females is essential for the well rounded development of the nation. Back in 2004-05 there was a sharp 43% decline in the workforce. As it is known – the decline in the workforce is never a good news for the country. It just means that less production and more unemployment have been generated.

Another misfortune was that there was a sharp decline in female participation from 29% to 21% in 2004-05. This was a cause for alarm. Therefore steps had to be taken to coax the population.

So what are the key features of this scheme?

  • The scheme has been launched in this fiscal year 2016-17 in the budget. It is solely targeted towards creating more employment opportunities and fair wage.
  • Anyone who is earning up to Rs. 15000 per month and works 240 days a year is eligible to receive the benefits of this scheme.
  • Under this scheme the government will bear part of the pension in the form of Wage Pension Scheme in which they will pay 8.33% of the wage for the first 3 years.
  • As of now 3 lakh establishments have been registered under this scheme. This just means that under them employees will be hired. It is said that 20 workers will be hired per establishment.
  • The scheme has already been launched and it is expected to take effect soon. Already the government has allocated Rs. 1000 crore for this scheme.


Here are a few additional details of the project that you might have missed –

Serial No. Data Information
1 Budget for the scheme Rs. 1000 crore
2 Government contribution 8.33% wage on behalf of employer
3 Remaining to be paid by employers 3.67%
4 Government’s contribution for textile 12% plus extra 3.67%
5 Scheme launched by Central Government of India

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