The Government will implement 3 schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package. These will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers. This was announced by Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman while presenting the Union Budget 2024-25 in Parliament. The three schemes to be implemented are as below: 

The Union Finance Minister said that this scheme will provide one-month wage to all persons newly entering the workforce in all formal sectors. The direct benefit transfer of one-month salary in 3 instalments to first-time employees, as registered in the EPFO, will be up to Rs 15,000. The eligibility limit will be a salary of Rs 100,000 per month. “The scheme is expected to benefit 21 million youth”, she said.

The Union Finance Minister stated that 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 EPFO contribution in the first 4 years of employment. Smt. Nirmala Sitharaman stated that the scheme is expected to benefit 3 million youth entering employment and their employers.

This employer-focused scheme will cover additional employment in all sectors, said the Union Finance Minister. All additional employment within a salary of Rs 100,000 per month will be counted. The Government will reimburse to employers up to Rs 3,000 per month for 2 years towards their EPFO contribution for each additional employee. “The scheme is expected to incentivize additional employment of 5 million people”, she added. 

The Government will launch a comprehensive scheme for providing internship opportunities in top companies. This will be the 5th scheme under the Prime Minister’s package.

While presenting the Union Budget 2024-25 in Parliament today, the Union Finance Minister, Smt. Nirmala Sitharaman announced that the scheme will provide internship opportunities in 500 top companies to 10 million youth in 5 years. They will gain exposure for 12 months to real-life business environment, varied professions and employment opportunities, she said.

An internship allowance of Rs 5,000 per month along with a one-time assistance of Rs 6,000 will be provided to the youth. Companies will be expected to bear the training cost and 10% of the internship cost from their CSR funds, the Finance Minister added.  

Union Finance Minister, Smt. Nirmala Sitharaman has announced a new centrally sponsored scheme as the 4th scheme under the Prime Minister’s package, for skilling in collaboration with State governments and industry. While presenting the Union Budget 2024-25 in Parliament today, the Finance Minister said that 2 million youth will be skilled over a 5-year period and 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation. The Finance Minister stated that course content and design will be aligned to the skill needs of industry and new courses will be introduced for emerging needs.

With regard to skilling loans, the Finance Minister announced that the Model Skill Loan Scheme will be revised to facilitate loans up to Rs 75000 with a guarantee from a government promoted Fund. This measure is expected to help 25,000 students every year.

(Source:PIB)