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Informist, Tuesday, Jul 23, 2024

--To launch 3 schemes for employment-linked incentives
--Moot 1-month wage for 1st-time employees entering formal sector
--To give support to employees, employers for EPFO enrolment
--Plan job creation scheme for manufacturing sector
--DBT of one-month pay in 3 tranches of 15,000 rupees under PM plan
--To incentivise employers, employees in manufacturing sector for first 4 years
--New scheme will benefit 3 mln employees, their employers

NEW DELHI – Finance Minister Nirmala Sitharaman today announced three employment-linked incentive schemes as part of the Union Budget for 2024-25 (Apr-Mar).

"Our government will implement following 3 schemes for 'Employment Linked Incentive', as part of the Prime Minister's package. These will be based on enrolment in the EPFO (Employees' Provident Fund Organisation), and focus on recognition of first-time employees, and support to employees and employers," Sitharaman said.

Under the first scheme, the government will provide one month of wages in three instalments to first-time employees in all formal sectors up to 15,000 rupees. Any first-time employee with a salary less than 100,000 rupees will be eligible for this scheme.

"The scheme is expected to benefit 21.0 mln youth," Sithraman said. The first time employee will have to undergo a compulsory online financial literacy course before claiming the second instalment. The subsidy will have to be refunded by the employer if the employment to the first timer ends within 12 months of recruitment. 

The enrolment duration for this scheme is two years, and the government will spend 230 bln rupees on it.

Sitharaman said the second scheme will focus on job creation in the manufacturing sector. This scheme will incentivise additional employment in the manufacturing sector, linked to the employment of first-time employees. "An incentive will be provided at specified scale directly both to the employee and the employer with respect to their Employees' Provident Fund Organisation contribution in the first 4 years of employment," Sithraman said.

The scheme will be for two years and is expected to benefit 3 mln youth entering employment, and their employers. It will cost the government a total 520 bln rupees.

The third scheme aims to provide support to employers in all sectors. The government will reimburse employers up to 3,000 rupees per month for two years towards their Employees' Provident Fund Organisation contribution for each additional employee. The scheme is expected to incentivise additional employment of 5 mln. It will cost the government 320 bln rupees.  End

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

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