Incentives to private sector for employing persons with disability

The Government has approved the Scheme of providing incentives to the employers in the expanding private sector, to promote employment of persons with disabilities. It has been decided that incentives be provided to the private sector employers.

Section 41 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and full Participation) Act, 1995 provides for incentives to employers to ensure that at least five percent of their work force was composed of persons with disabilities. The National Policy for Persons with Disabilities, which was adopted in 2006 also lays down that pro-active measures will be taken to provide incentives, awards, tax exemptions etc. to encourage employment of persons with disabilities in private sector. Accordingly, Finance Minister in his Budget Speech had announced a Scheme for employment of physically challenged in the organized sector

After consideration,. Under the scheme, the employees with disabilities covered under the Persons with Disabilities (Equal Opportunities, Protection of Rights and full Participation) Act, 1995 and the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 and working in the private sector, with monthly wage up to Rs.25000/- per month would be covered. The scheme would be applicable to all the employees with disabilities, who are appointed on or after 1.4.2008.

The scheme of giving incentives to employers, for providing employment to persons with disabilities in the private sector, as approved by the Government would be as under:-

• Total Outlay : Rs. 1800 crore for the 11th Five Year Plan
• Sector covered : Private Sector
• Jobs to be created : one lakh per annum
• Salary limit : Employees with disabilities, with monthly wage up to Rs.25000/-per month, working in the private sector would be covered.
• Incentives : Payment by the Government of the employer’s contribution to the Employees Provident fund and Employees State Insurance for the first three years. The administrative charges of 1.1% of the wages of the employees covered under Employees Provident Fund &Miscellaneous Provisions (EPF&MP) Act will continue to be paid by the employer.

A. The scheme will be applicable to the employees with disabilities:-

1. Covered under the Persons with Disabilities (Equal opportunities, Protection of Rights and full Participation) Act, 1995 and the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999.
2. In the private sector all over India on enrolment of the employees in Employees Provident Fund (EPF) and the Employees State Insurance (ESI), under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and Employees State Insurance Act, 1948 respectively. In Jammu and Kashmir, the employees would be registered in EPF under the J&K Employee Provident Fund and Miscellaneous Provision act, 1961.
3. Appointed on or after 1.4.2008.

B. The employers would submit a copy of the disability certificate, issued to the disabled employee by the Competent Authority under the Persons with Disabilities (Equal Opportunities, Protection of Rights and full Participation) Act, 1995 and the Persons with Disabilities (Equal Opportunities, Protection of Rights and full Participation) Rules, 1996, first time when such benefit under EPF and ESI is claimed.
C. The Government will directly provide employer’s contribution for the schemes covered under the Employees Provident Fund & Miscellaneous Provisions Act, 1952 and the Employees State Insurance Act, 1948. This will be done in respect of employees for a maximum period of three years. The administrative charges of 1.1% of the wages of the employees covered under the EPF Act will continue to be paid by the respective employers.

The Ministry of social Justice& Empowerment would make available to the Employees Provident fund Organization and Employees State Insurance Corporation lump sum funds by way of advance. These would be used for the purposes of adjustment of individual claims received from the employers under the scheme.

The amount with the organizations would be replenished periodically. Initially both the organizations would be provided Rs. 5 crore each and considering the requirement, the amount would be subsequently enhanced. The advance amount would be subject to quarterly review by the high level committee to be set up.

Download PDF: Scheme for providing Employment to Persons with Disabilities in the Private Sector
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