The Union Budget 2024-25 is garnering polarising reactions throughout the country. Today while presenting the Union Budget in Parliament, Finance Minister Nirmala Sitharaman listed 9 key highlights of the budget, the second point being about employment and skilling. It’s important to note that 3 sweeping employment-linked incentives have been introduced under the Prime Minister’s package.
She (the Finance Minister) added “These schemes will be based on enrollment in the EPFO (Employees' Provident Fund Organisation) and focus on first-time employees and employers,” added the Finance Minister.
Scheme A
- Designed for newcomers, this initiative will provide a month's wages to individuals entering the formal workforce for the first time. The first month's salary, capped at ₹15,000, will be directly transferred to these new employees in three instalments.
- The scheme targets those registered under the EPFO, with a potential monthly salary of up to ₹1 lakh.
- Sitharaman highlighted that the scheme will benefit up to 1 million young individuals.
Scheme B
- This initiative focuses on fostering additional job creation in the manufacturing sector by incentivising the employment of first-time workers.
- Incentives will be awarded at a predefined scale to both employees and employers, based on their EPFO contributions during the first four years of employment.
- The Finance Minister indicated that the scheme aims to support 3 million first-time employees and their employers.
Scheme C
- This initiative aims to support employers by covering additional employment across various sectors. All new employment with salaries up to ₹1 lakh per month will be considered.
- The government will reimburse employers up to ₹3,000 per month for two years towards their EPFO contributions for each additional employee hired.
- Sitharaman stated that this scheme is expected to incentivise the employment of 5 million individuals.
Apart from these three employment-linked schemes, the Finance Minister also spoke on the inclusion of women in the workforce at the same time emphasised on upskilling 2 million youth through a centrally sponsored programme.
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