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Informist, Wednesday, Dec. 11, 2024

 

--Source: Govt looking to roll out employment-linked incentive scheme soon

--Source: Employment-linked incentive scheme rollout likely by Dec-end, Jan

 

By Shubham Rana

 

NEW DELHI – The government wants to launch the employment-linked incentive schemes, which were announced in the Union Budget, at the earliest and the labour ministry is likely to roll out the schemes by the end of December or by January, a senior official in the ministry said. 

 

"We want to roll them out as soon as possible. Hopefully, by December-end or January it should be implemented," the official said. Finance Minister Nirmala Sitharaman had announced three employment-linked incentive schemes in the Budget for 2024-25 (Apr-Mar) presented in July. Under the first scheme, the government will provide a month wages up to INR 15,000 in three instalments to first-time employees in all formal sectors.

 

The second scheme, with a cost of INR 520 billion, will focus on job creation in the manufacturing sector. An incentive will be provided at a specified scale directly to the employee and the employer with respect to their Employees' Provident Fund Organisation contribution in the first four years of employment, Sitharaman had said. The third scheme aims to provide support to employers in all sectors. The government will reimburse employers up to 3,000 rupees a month for two years towards their EPFO contribution for each additional employee. The scheme is expected to incentivise additional employment of 5 million people. It will cost the government INR 320 billion.

 

Labour Minister Mansukh Mandaviya and Labour Secretary Sumita Dawra have held multiple review meetings regarding the launch of the scheme across India in recent months. Dawra held a meeting on Nov. 18 to review the preparations for the launch of the scheme, where issues related to the implementation, preparedness of information technology systems, and an outreach programme were discussed. 

 

Informist had reported in August that the implementation of the employment-linked incentive schemes could be delayed, which the government wanted to roll out in a 'mission mode', as trade bodies protested against the lack of consultation and planning before the announcement. 

 

"Majority of trade bodies are sceptical about the feasibility of employment-linked incentive schemes...there are many caveats and the government has also overestimated what it can actually deliver," a leader of a trade union had told Informist in August.

 

The Employees’ Provident Fund Organisation last week extended the deadline for subscribers to activate their universal account numbers and link their aadhaar with bank accounts till Dec. 15 to receive direct benefit transfers under the employment-linked incentive scheme.  End

 

Edited by Akul Nishant Akhoury

 

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