The government is making efforts to refine its employment-linked schemes, aiming to ensure that they genuinely generate jobs and prevent any misuse or diversion of funds, according to sources familiar with the matter. These schemes, which were initially proposed for Cabinet approval nearly four months ago, are being restructured by the Ministry of Labour and Employment to ensure that only legitimate employees and employers benefit from them.
The government is particularly cautious about avoiding the misuse of funds seen during the implementation of the Atmanirbhar Bharat Rojgar Yojana (ABRY) launched during the Covid-19 pandemic. The scheme had faced issues with fraudulent companies that exploited the benefits, and the government is keen to prevent a repeat of this situation under the new proposals.
One of the key changes being explored is linking the new schemes with Aadhaar to verify the authenticity of employees and employers. However, there is uncertainty within the government about whether this will fully safeguard against the diversion of funds to fake or unintended beneficiaries. To enhance transparency and accountability, the ministry is considering periodic mandatory audits for beneficiary companies.
In addition, the government is planning to strengthen the Employees’ Provident Fund Organisation (EPFO) to manage the increased payrolls expected from the three employment schemes. The Budget 2024-25 has allocated ₹1.07 lakh crore for these schemes, with an estimated creation of 29 million jobs over the next five years. The schemes are designed to incentivize employment generation, especially for first-time job seekers.
Under Scheme A, the government will reimburse up to ₹15,000 in three instalments for individuals entering the workforce for the first time. Scheme B will focus on large-scale hiring in the manufacturing sector, with the government offering a wage subsidy to employers who hire first-time workers and retain them for at least 12 months.
By refining the scheme’s structure and focusing on transparency, the government hopes to ensure that these employment-linked incentives are effectively used to create meaningful job opportunities while avoiding any misuse of public funds.
