Union Budget Union Budget: Government will implement 3 schemes for 'Employment Linked Incentive'
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, Nirmala Sitharaman while presenting the Union Budget 2024-25 in Parliament today. The three schemes to be implemented are as below:
Scheme A: First Timers
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. 1 lakh per month.
“The scheme is expected to benefit 210 lakh youth”, she said.
Scheme B: Job Creation in manufacturing
The Union Finance Minister stated that this scheme will incentivize 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.
Nirmala Sitharaman stated that the scheme is expected to benefit 30 lakh youth entering employment and their employers.
Scheme C: Support to 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. 1 lakh 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 50 lakh persons,” she added.
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