Atmanirbhar Bharat Rozgar Yojana (ABRY) — Complete Guide 2025

The Atmanirbhar Bharat Rozgar Yojana (ABRY) is a flagship employment generation scheme launched by the Government of India as part of the Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission) economic stimulus package. Announced in May 2020 during the COVID-19 pandemic, the scheme was designed to incentivize employers to create new jobs and restore employment for workers who lost their jobs during the pandemic. Even in 2025, the scheme continues to provide critical support to both employers and employees by subsidizing EPF contributions.

In this comprehensive guide, we explain everything about the Atmanirbhar Bharat Rozgar Yojana — its objectives, eligibility criteria, subsidy structure, registration process, claim procedure, and how both employers and employees can benefit from this scheme.

Overview of Atmanirbhar Bharat Rozgar Yojana

Objectives of ABRY

The Atmanirbhar Bharat Rozgar Yojana was launched with the following primary objectives:

1. Job Creation: Incentivize employers (establishments) to create new employment opportunities by reducing their labour costs through EPF subsidy.
2. Job Restoration: Encourage establishments to re-hire workers who were laid off or lost their jobs during the COVID-19 pandemic.
3. Social Security: Ensure that newly hired workers are covered under the EPF and EPS (Employees' Pension Scheme) framework.
4. Economic Recovery: Stimulate economic activity by putting more disposable income in the hands of workers and reducing operational costs for employers.

Who is Eligible Under ABRY?

Eligible Establishments (Employers)

• Any establishment registered with EPFO is eligible to claim benefits under ABRY.
• This includes private sector companies, partnership firms, trusts, societies, and even government establishments.
• The establishment must not have been closed or non-functional during the reference period.
• The establishment must have a valid EPF code and be compliant with EPF filing requirements.

Eligible Employees

The employee must meet ALL of the following conditions:

• New Entrant (Category A): An employee who did not have a Universal Account Number (UAN) and never worked in any EPF-covered establishment before. The employee is joining employment for the first time.
• Job Loser (Category B): An employee who had a UAN but lost employment during the period from March 1, 2020 to September 30, 2020, and was not employed in any EPF-covered establishment during this period.
• Wage Threshold: The employee's monthly wage must be less than ₹15,000 at the time of joining.
• The employee must be appointed on or after October 1, 2020, and up to March 31, 2025.

Subsidy Structure Under ABRY

The government provides a subsidy on both the employer's and employee's EPF contributions for a period of 2 years from the date of joining. The subsidy structure differs based on the size of the establishment:

How ABRY Benefits Both Employers and Employees

Benefits for Employers

• Reduced Labour Cost: The government reimburses the employer's 12% EPF contribution for eligible new employees for 24 months.
• Encouragement to Hire: By reducing the effective cost of hiring, ABRY makes it financially viable for establishments to expand their workforce.
• Simplified Process: The subsidy is claimed through the EPFO portal, integrated with the regular monthly PF return filing.
• No Additional Compliance: The scheme uses existing EPFO mechanisms, so no separate registration or reporting is needed.

Benefits for Employees

• Higher Take-Home Salary: In establishments with up to 1000 employees, the employee's 12% PF contribution is also paid by the government, effectively increasing the take-home pay.
• Full PF Accumulation: Even though the government pays the contributions, they still get credited to the employee's PF account, building their retirement savings.
• Pension Coverage: The EPS portion (8.33% of wages) is contributed to the employee's pension fund, ensuring pension eligibility.
• No Loss of Benefits: The subsidy does not affect the employee's eligibility for other social security benefits or income tax deductions.

How ABRY Subsidy is Calculated: Examples

Example 1: Establishment with 500 employees, Monthly Wage = ₹12,000

Annual Subsidy (per employee): ₹2,880 × 12 = ₹34,560 per year × 2 years = ₹69,120 per employee.

Example 2: Establishment with 2000 employees, Monthly Wage = ₹10,000

How to Register and Claim ABRY Benefits

Step 1: Employer Registration on EPFO Portal

1. Log in to the EPFO employer portal at https://unifiedportal.epfo.in.
2. Navigate to "ABRY" tab under "Registration and Services."
3. Read the scheme details and accept the terms and conditions.
4. Register the establishment for ABRY by providing establishment details.
5. Once registered, the establishment can start adding eligible employees.

Step 2: Adding Eligible Employees

1. In the ABRY section, click on "Add New Employee."
2. Enter the employee's details: Name, UAN (if previously issued), Aadhaar number, date of joining, monthly wages, and bank account details.
3. The system automatically validates the employee's eligibility based on EPFO records (previous employment history, wage threshold, etc.).
4. If eligible, the system confirms the subsidy eligibility and the subsidy amount.
5. Upload supporting documents (appointment letter, identity proof) as required.

Step 3: Monthly EPF Filing and Subsidy Claim

1. File the monthly ECR (Electronic Challan cum Return) as usual on the EPFO portal.
2. The system automatically calculates the subsidy amount for ABRY-eligible employees.
3. The employer pays only the net amount (total PF contribution minus ABRY subsidy).
4. The EPFO portal generates a monthly claim report showing subsidy details.

Step 4: Subsidy Disbursement

1. After filing the monthly return, the EPFO processes the subsidy claim.
2. The subsidy amount is credited to the employer's bank account within 7-15 working days.
3. For the employee's share (in small establishments), the amount is adjusted in the EPF system without requiring physical disbursement.
4. Monthly status reports are available on the EPFO portal for tracking subsidy claims.

Important Compliance Requirements for Employers

• No Prior Employment: For new entrants (Category A), employers must ensure the employee never had a UAN or EPF membership before.
• Wage Ceiling: The employee's monthly wage must not exceed ₹15,000 at the time of joining. If the wage later increases above ₹15,000, the subsidy continues for the remaining period.
• Maintain Employment: The subsidy is provided only as long as the employee continues to be employed. If the employee leaves or is terminated, the subsidy stops from the following month.
• No Displacement: The scheme prohibits employers from replacing existing employees with new hires just to claim the subsidy. Any violation can result in disqualification and recovery of subsidy amounts.
• Regular Filing: Employers must file monthly ECR returns without fail. Missing returns can result in delayed or denied subsidy claims.

Extension and Status of ABRY (2024-25)

The Atmanirbhar Bharat Rozgar Yojana has been extended multiple times since its original launch:

• Phase 1: October 1, 2020 to June 30, 2021 (original period)
• Phase 2: Extended to March 31, 2022
• Phase 3: Extended to March 31, 2023
• Phase 4: Extended to March 31, 2024
• Phase 5: Extended to March 31, 2025

As of 2025, the scheme remains active with the government committing continued funding. Employers should check the latest EPFO circulars for any further extensions or modifications to the scheme.

ABRY vs Other Employment Schemes

Common Challenges in ABRY Claims

1. Eligibility Mismatch: The most common issue is employers adding employees who do not meet the eligibility criteria (e.g., wage above ₹15,000 or previous EPF employment).
2. Aadhaar Validation Issues: If the employee's Aadhaar is not seeded with UAN or has name/DOB mismatches, the validation fails.
3. Bank Account Issues: Incorrect bank account details can delay subsidy disbursement.
4. Late Filing: Delayed filing of monthly ECR returns can result in missed subsidy claims.
5. Duplicate Claims: If the same employee's subsidy is claimed by two different establishments, the claim is rejected.

How to Track ABRY Subsidy Status

1. EPFO Employer Portal: Log in to the unified portal and navigate to the ABRY section to see claim status.
2. Monthly Claim Reports: Downloadable reports show the status of each month's claim — submitted, processed, or disbursed.
3. ABRY Dashboard: The EPFO website provides a public dashboard showing scheme-level statistics.
4. Helpdesk: For claim-related issues, employers can contact the EPFO helpdesk at 1800-118-005 or raise a ticket through the portal.

Frequently Asked Questions

Q1: Is ABRY still active in 2025?

Yes. The scheme has been extended through March 31, 2025. Employers can continue to add eligible employees and claim subsidies. Check EPFO circulars for any further extensions beyond this date.

Q2: Can a contract labour employee be covered under ABRY?

Yes, contract labour employees are eligible if the principal employer registers them and meets all other eligibility conditions. The contract labour must have a valid UAN and meet the wage criteria.

Q3: Can an establishment claim ABRY subsidy for an employee who is re-hired by the same establishment?

Yes, if the employee was separated from the establishment during March 1, 2020 to September 30, 2020, and is being re-hired after October 1, 2020, the establishment can claim the subsidy under Category B (job losers).

Q4: What happens if an employee's wage increases above ₹15,000 during the subsidy period?

The subsidy continues for the remaining period (up to 2 years from date of joining). The eligibility is based on the wage at the time of joining, not the current wage.

Q5: Is there any penalty for wrongfully claiming ABRY subsidy?

Yes. If an establishment is found to have wrongfully claimed the subsidy (e.g., by providing false information or displacing existing employees), the EPFO can recover the full subsidy amount with interest and impose additional penalties. The establishment may also be debarred from future scheme benefits.

Conclusion

The Atmanirbhar Bharat Rozgar Yojana (ABRY) represents a significant government initiative to boost employment generation in India by directly reducing the cost of hiring for employers. With the government covering up to 24% of wages (employer + employee PF contributions) for eligible new employees for 2 years, the scheme provides a powerful financial incentive for establishments to expand their workforce.

For employers, ABRY reduces labour costs while enabling business growth. For employees, it offers higher take-home pay along with full EPF coverage. The simple, integrated claim process through the EPFO portal makes it easy for compliant establishments to participate.

As the scheme continues through 2025, establishments that have not yet registered should evaluate their hiring plans and take advantage of this substantial subsidy. For the latest updates on ABRY, visit the EPFO website or the government's Atmanirbhar Bharat portal.

For more government scheme guides and compliance tools, visit ToolsOfIndia.com.