Complete guide to ABRY — government pays employee and employer EPF contributions (24% of wages) for new employees earning under ₹15,000/month. Reduce hiring costs and boost employment.
Aatmanirbhar Bharat Rozgar Yojana (ABRY) — Employment Generation Scheme
What is ABRY?
Aatmanirbhar Bharat Rozgar Yojana (ABRY) is an employment generation scheme launched on 1 October 2020 under the Aatmanirbhar Bharat 3.0 package. The government subsidises EPF contributions for new employees hired after 1 October 2020, who earn less than ₹15,000 per month. The scheme incentivises formal sector employment creation by reducing the cost of hiring for establishments registered with EPFO.
Subsidy Structure — Who Gets What
For establishments with up to 1,000 employees: the government pays both the employee's EPF share (12% of wages) and the employer's EPF share (12% of wages) — a total of 24% subsidy. For establishments with more than 1,000 employees: the government pays only the employee's share (12% of wages). The subsidy is credited directly to the EPF accounts of eligible employees for 2 years from the date of registration.
Eligibility for Establishments
Any establishment registered with EPFO is eligible. The establishment must have a reference base of employees as on 30 September 2020. New employees must be above this reference base. EPFO-registered establishments include companies, factories, shops, and other entities covered under the EPF & MP Act, 1952. Both existing and newly registered EPFO establishments can avail the benefit.
Eligible Employees
New employees who satisfy all of the following: (1) Monthly wages below ₹15,000, (2) Did not have a UAN (Universal Account Number) before 1 October 2020 — OR had a UAN but were not employed in any EPFO-registered establishment from 1 March 2020 to 30 September 2020, (3) Joined the establishment on or after 1 October 2020. The employee must have an Aadhaar-seeded UAN for the subsidy to be credited.
Reference Base — September 2020
The reference base is the number of employees for whom ECR (Electronic Challan cum Return) was filed for September 2020. New hiring is measured as employees above this base. For newly registered establishments (registered after 30 September 2020), the reference base is zero, meaning all employees are eligible. This ensures only genuinely new jobs are incentivised, not re-labelling of existing positions.
How to Register and Claim on EPFO Portal
Step 1: Log in to the EPFO Unified Portal (unifiedportal-emp.epfindia.gov.in). Step 2: Navigate to ABRY section under the "Employer" tab. Step 3: Mark eligible new employees in the ECR for ABRY benefit. Step 4: File monthly ECR with correct wage details. Step 5: EPFO automatically processes eligible claims and credits the subsidy to employee EPF accounts. No separate application form is needed — it is ECR-driven.
Duration and Subsidy Period
The subsidy is available for 2 years from the date of registration of each new employee. If an employee is hired on 15 January 2021, the establishment receives the subsidy until 14 January 2023 for that employee. The scheme was originally open for registrations until 31 March 2022, and the subsidy continues for 2 years from the last eligible registration date. Check EPFO circulars for any extensions.
Benefits for Employers
The primary benefit is a direct reduction in hiring costs. For small establishments (under 1,000 employees), the 24% EPF subsidy effectively makes the first 2 years of a new hire nearly cost-free in terms of statutory contributions. This encourages formalisation of the workforce, reduces the incentive for off-the-books employment, and helps businesses scale up workforce during economic recovery.
Common Issues and Troubleshooting
Frequent issues include: UAN not seeded with Aadhaar (mandatory for subsidy), employees showing as ineligible due to prior UAN activity, ECR filed with incorrect wages exceeding ₹15,000, and delayed processing. Solutions: Ensure Aadhaar-UAN linking before filing ECR, verify employee eligibility on the EPFO portal, maintain wages below the ₹15,000 threshold, and file ECR on time each month.
Current Status and Extensions
ABRY has benefited over 60 lakh employees and 1.5 lakh establishments since its launch. The registration window closed on 31 March 2022, but the 2-year subsidy period continues for employees registered before the deadline. The government has indicated that learnings from ABRY are being incorporated into the new Employment-Linked Incentive (ELI) schemes announced in subsequent budgets. Check the latest EPFO notifications for updates.