In the Union Budget 2024, Finance Minister Nirmala Sitharaman introduced three new employment-linked incentive schemes. The government will invest Rs 2 lakh crore over the next five years to create jobs.
Details of the Job Schemes
Scheme A: First-time employees registered with the Employees’ Provident Fund Organization (EPFO) will receive direct benefit transfers. They will get one month’s salary in three installments, up to Rs 15,000.
“First timers: This scheme will provide one-month wage to all persons newly entering the workforce in all formal sectors,” Said Union Finance Minister Nirmala Sitharaman during her Budget Speech in Lok Sabha
Scheme B: Incentives will be provided for job creation in the manufacturing sector. Both employees and employers will receive benefits based on their EPFO contributions for the first four years of employment.
“Job creation in manufacturing: This scheme will incentivize additional employment in the manufacturing sector, linked to the employment of first-time employees, and incentive will be provided at specified scale, directly both to the employee and employer, with respect to the EPFO contribution in the first four years of employment. The scheme is expected to benefit 30 lakh youth entering employment and their employers,” Said Union Finance Minister Nirmala Sitharaman during her Budget Speech in Lok Sabha
Scheme C: Employers will be reimbursed up to Rs 3,000 per month for two years for their EPFO contributions for each additional employee.
“Support to Employers – this employer-focussed scheme will cover additional employment is all sectors. All additional employment within a salary of Rs 1 lakh per month will be counted. The government will reimburse to employers up to Rs 3000 per month for two years towards the EPFO contribution for each additional employee. The scheme is expected to incentivise additional employment of 50 lakh persons,” Said Union Finance Minister Nirmala Sitharaman during her Budget Speech in Lok Sabha
New Skilling Scheme
The Minister also announced a centrally-sponsored scheme to skill 20 lakh youth over the next five years. The model skilling loan scheme will be revised, allowing loans of up to Rs 7.5 lakh.
Support for Education and Training
- ITIs Upgrade: 1,000 Industrial Training Institutes (ITIs) will be upgraded using the hub-and-spoke model.
- Higher Education Loans: The government will provide financial support for loans up to Rs 10 lakh for higher education within the country.
Collaborative Efforts
The new skilling scheme, in collaboration with states and industry, aims to train 20 lakh youth over five years.
