PMRPY Scheme Guidelines & Benefits

Pradhan Mantri Rojgar Protsahan Yojana – Boosting jobs by subsidizing 12% employer provident fund contributions.

What is the PMRPY Scheme?

The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) was launched by the Ministry of Labour and Employment, Government of India, to incentivize employers for generating new employment opportunities. Under the scheme, the government reimburses the entire 12% employer’s contribution (which consists of 8.33% towards the Employees' Pension Scheme (EPS) and 3.67% towards the Employees' Provident Fund (EPF)) for new eligible employees for the first three years of their tenure.

How it Benefits Employers

By subsidizing the statutory 12% contribution, PMRPY directly reduces payroll operational costs for businesses, making it easier to expand teams, hire formal workers, and maintain compliance standards.

PMRPY Monthly Subsidy Savings (Sample Calculation)

Here is an illustrative calculation demonstrating how much an employer saves under PMRPY for an employee earning basic wages of ₹15,000 per month:

Contribution Ledger Account	Statutory Rate	Standard Employer Cost	Government PMRPY Subsidy	Net Cost to Employer
Account 10 (EPS - Pension)	8.33%	₹1,250	-₹1,250 (Covered)	₹0
Account 1 (EPF Difference)	3.67%	₹550	-₹550 (Covered)	₹0
Account 21 (EDLI - Insurance)	0.50%	₹75	-	₹75
Account 2 (EPF Admin Charges)	0.50%	₹75	-	₹75
Total Monthly Remittance	13.00%	₹1,950	-₹1,800	₹150

*By enrolling in PMRPY, the monthly employer out-go drops from ₹1,950 to just ₹150 per qualifying employee, representing a saving of 92.3% in employer contributions.

Double-Filter Eligibility Criteria

To qualify for the 12% government reimbursement, requirements must be met by both the company and the newly onboarded worker:

🏢 Establishment Requirements

✔️ Must be registered with EPFO under the EPF Act.
✔️ Must hold a valid Labour Identification Number (LIN).
✔️ Must have added net new employees compared to the establishment's worker strength reference base.

👤 Employee Requirements

✔️ Must be registered with a new UAN.
✔️ Monthly gross basic wages must be ₹15,000 or less.
✔️ UAN must be successfully seeded with Aadhaar.
✔️ Must be a first-time job holder entering the formal workforce.

How to Claim Subsidy on the Portal

Employers do not need to submit physical bills or manually apply for refunds. The system is integrated into the regular ECR upload procedure:

Ensure all eligible new employees are registered on the Unified Portal with their Aadhaar-linked UANs.
Log in to the **EPFO Employer Portal** and navigate to the PMRPY section under the main menu.
Submit the online **PMRPY Registration Form** for the eligible employees.
Prepare and upload your regular 11-column monthly ECR file.
The system automatically cross-references the UANs. If the employee is eligible and the firm qualifies, the system deducts the 12% subsidy directly from the generated TRRN challan, meaning the employer pays only the net difference.

Frequently Asked Questions

What happens if the salary increases above ₹15,000 during the 3 years? If an employee's monthly basic wages exceed ₹15,000 at any point during their 3-year subsidy period, the government reimbursement will immediately stop, and the employer must bear the full statutory contribution.

Is the PMRPY benefit applicable for temporary or contract workers? Yes, as long as they hold a new Aadhaar-linked UAN, earn less than ₹15,000, and are declared on the ECR, contract workers are fully eligible for the subsidy.

Employer Quick Links

ECR Return Filing Approve Employee KYC Company Registration (OLRE)

Employer Portals

Independent Information Portal

Not affiliated with EPFO Govt

Updated for 2026

Free Guides & Calculators

Is this useful?

Your quick rating helps us improve these EPFO guides.