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.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
