Eligibility of an E Shram Card includes working in an organisation with over 20 employees and earning less than ₹15,000 rupees per month. The card allows access to EPF account information. Read to know more
E Shram card, also known as the Udyog Aadhaar Memorandum (UAM), is a unique 12-digit identifier for micro and small enterprises (MSEs) in India. It was launched by the Ministry of Micro, Small and Medium Enterprises (MSME) to simplify the registration process and provide many benefits to small business owners. The E Shram card not only acts as a registration certificate for MSEs but also provides a host of benefits, such as easier access to credit, subsidies, and government schemes. In this blog, also learn about eligibility for E-shram card.
e-Shram Card
- E Shram Card, also known as Universal Account Number (UAN), is a unique 12-digit identification number assigned to each employee enrolled in India’s Employees’ Provident Fund (EPF) scheme.
- The E Shram Card serves as a single point of reference for the employee’s EPF account and enables them to access their EPF account information, view their EPF balance, download their EPF passbook, and more.
- The E Shram Card also facilitates the transfer of EPF account balance from one job to another, eliminating the need for the employee to maintain multiple EPF accounts.
- To be eligible for an E Shram Card, the employee must work in an organisation with more than 20 employees, earn a wage less than ₹ 15,000 per month, and be an Indian citizen working in India.
Who is Eligible for an E Shram Card?
Eligibility for E-Shram Card – The following categories of employees are eligible to obtain an E Shram Card in India:
- Employees working in organisations that have more than 20 employees
- Employees who earn a wage of less than ₹15,000 per month
- Employees who are Indian citizens and are working in India
It is important to note that all employees eligible for the EPF scheme are also eligible for an E Shram Card.
Organizations with Less than 20 Employees
Organizations with less than 20 employees are not required to enrol their employees in the EPF scheme. However, if the employees of such organizations choose to enrol in the EPF scheme, they can obtain an E Shram Card.
Employees Earning More than ₹15,000 per Month
Employees who earn a wage of more than 15,000 rupees per month are not eligible for the EPF scheme. However, they may still be eligible for other social security schemes such as the Employees’ Pension Scheme (EPS) and the Employees’ Deposit Linked Insurance Scheme (EDLI).
Non-Resident Indian (NRI) Employees
Non-Resident Indian (NRI) employees working in India can obtain an E Shram Card. However, NRIs working abroad are not eligible for the EPF scheme and, therefore, not eligible for an E Shram Card.
Eligibility for E-Shram Card
To be eligible for an E Shram card, an enterprise must meet the following criteria:
- Type of Enterprise – The enterprise must be a micro, small or medium-sized enterprise as defined by the MSME Act, 2006.
- Nature of Business – The enterprise must be engaged in manufacturing, production, processing or preservation of goods or providing services.
- Ownership – The enterprise must be a proprietorship, partnership firm, limited liability partnership, cooperative society, Hindu Undivided Family (HUF) or a private limited company.
- Investment – The investment in plant and machinery or equipment for manufacturing enterprises and the investment in equipment for service enterprises must be within limits prescribed by the MSME Act, 2006.
- Turnover – The annual turnover of the enterprise must be, at most the limits prescribed by the MSME Act, 2006.
Subsidies and Benefits for E Shram Card Holders
Having an E Shram card provides MSEs with a range of subsidies and benefits, some of which are listed below
- Access to Credit –E Shram card holders can easily access credit from banks and financial institutions as the card acts as a registration certificate for MSEs.
- Subsidies –E Shram card holders are eligible for various subsidies offered by the government for MSEs such as the Prime Minister’s Employment Scheme and the Credit Linked Capital Subsidy Scheme.
- Government Schemes –E Shram card holders can avail of various government schemes such as the Technology Upgradation Fund Scheme and the Market Development Assistance Scheme.
- Tax Benefits – E Shram card holders are eligible for tax benefits under the MSME Act, 2006, such as priority sector lending, duty concessions, and easier compliance with government regulations.
- Marketing Support – E Shram card holders can avail of marketing support from the government, such as participation in trade fairs and exhibitions and access to information on market trends and consumer preferences.
- Technical Assistance – E Shram card holders can avail of technical assistance from the government, such as access to training programs and consultancy services, to improve the efficiency and competitiveness of their enterprises.
Conclusion:
In conclusion, the E Shram card is a unique identifier for micro and small enterprises in India. It provides a range of benefits and subsidies to help small business owners grow their enterprises.
To be eligible for an E Shram card, an enterprise must meet certain criteria such as type of enterprise, nature of business, ownership, investment, and turnover.
The card acts as a registration certificate for MSEs and provides easier access to credit, subsidies, government schemes, tax benefits, and marketing support. Overall, the E Shram card is a valuable tool for small business owners in India and can help them grow their enterprises and succeed in a competitive market.
