With shrinking employment opportunities in the state sector, the government on Thursday approved a Rs 1,800 crore (Rs 18 billion) scheme for incentivising private sector to employ 1,00,000 disabled people a year.
The approval to the scheme, envisaging payment by the government towards employers' contribution to the Employees' Provident Fund and the Employees' State Insurance, was given by the Cabinet Committee on Economic Affairs.
The 'historic decision" would involve government outlay of Rs 1,800 crore during the 11th Five Year Plan, Information and Broadcasting Minister Priyaranjan Dasmunsi said after the CCEA meeting.
"Employment opportunities in the government have been shrinking over the years. Therefore, it has become necessary that employment opportunities for the persons with disabilities are created in the private sector by giving incentives to the employers," he said. The scheme is applicable to the disabled employees drawing salary of up to Rs 25,000 per month, Dasmunsi said. The government contribution in the EPF and ESI will be restricted to a period of three years. However, the administrative charges of 1.1 per cent of the wages for EPF will have to be paid by the employer.
Dasmunsi said the Ministry of Social Justice and Empowerment would make available the "lump sum" funds to the Employees Provident Fund Organisation and Employees State Insurance Corporation by way of advance.
Initially, both the organisations would be provided Rs 5 crore (Rs 50 million) each and considering the requirement, the amount would be subsequently enhanced, the I&B Minister said.
To monitor the scheme, a high-level committee, co-chaired by the Ministries of Labour and Employment and Social Justice and Empowerment would be constituted.
The committee, co-chaired by secretaries in the two ministries and other officials, would consider various issues necessary for the smooth functioning of the scheme. The committee would meet periodically as per requirement, with a minimum sitting of once in a quarter.
Finance Minister P Chidambaram, in his Budget speech last year, had announced a scheme for employment of physically challenged in the organised sector, Dasmunsi noted.
Since the government provides several other supports to the PSUs, this scheme is applicable only to the private sector, he added.
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