- By Ritesh Kumar
- Tue, 23 Jul 2024 12:39 PM (IST)
- Source:JND
Education Budget 2024: Finance Minister Nirmala Sitharaman announced three employment-linked incentive schemes in the Union Budget for 2024-25 on Tuesday, aimed at boosting employment in manufacturing and other formal sectors of the economy. According to Sitharaman, these schemes will be implemented as part of the Prime Minister’s Budget package.
These schemes will be based on enrollment with the Employees Provident Fund Organisation (EPFO) and will focus on recognising first-time employees while providing support to both employees and employers, according to the Finance Minister.
Check Three Employment-Linked Incentive Schemes:
Scheme A: First-timers
The scheme will provide one month’s wage to all employees entering the workforce in formal sectors. First-time employees registered with the EPFO will receive a direct benefit transfer of one month’s salary in three installments, up to Rs 15,000. The eligibility limit for this benefit is set at Rs 1 lakh per month. The scheme is expected to benefit approximately 210 lakh youths.
Scheme B: Job creation in manufacturing
The scheme aims to incentivise additional employment in the manufacturing sector by linking it to the hiring of first-time employees. Incentives will be provided on a specified scale directly to both employees and employers, based on their EPFO contributions during the first four years of employment. This scheme is expected to benefit approximately 30 lakh youths and their employers.
Also Read: Education Budget 2024: Rs 1.48 Lakh Crore Allocated For Education, Employment, And Skilling
Scheme C: Support to employers
This employer-focused scheme will support additional employment across all sectors. All additional employment with a salary up to Rs 1 lakh per month will be counted. The government will reimburse employers up to Rs 3,000 per month for two years towards EPFO contributions for each additional employee. The scheme is expected to incentivise the employment of 5 million people.
