While presenting the Union Budget for 2024-25, Finance Minister Nirmala Sitharaman said the government will provide incentives to 30 lakh youth entering the job market by providing one month’s PF (provident fund) contribution
Central government will give one month’s salary to the new employees entering the workforce
New Delhi: The government on Tuesday said it will launch three employment-linked schemes.
While presenting the Union Budget for 2024-25, Finance Minister Nirmala Sitharaman said the government will provide incentives to 30 lakh youth entering the job market by providing one month’s PF (provident fund) contribution.
Sitharaman announced that the Central government will give one month’s salary to the new employees entering the workforce.
The amount will be provided to the employees as a Provident Fund contribution.
“Government to set up three schemes for employment generation. Scheme for first-timers to provide one-month wage to all persons newly entering the workforce in all sectors. First-time employment scheme to benefit 2.1 crore lakh youths,” FM Sitharaman said.
Scheme A is for first-timers, Scheme B is for the creation of jobs in the manufacturing sector, and Scheme C is for support to employers, FM Sitharaman explained.
Under Scheme A, there will be a direct-benefit transfer of one month’s salary, in three instalments to a maximum of Rs 15,000, to first-time employees registering with the Employees Provident Fund Organisation.
Under Scheme B, employees and employers will get incentives to be provided directly, as per their EPFO contributions, in the first four years of employment.
Scheme C will see reimbursements to employers, up to Rs 3,000 per month for two years, towards EPFO contribution for each additional employee.
The Finance Minister said that 20 lakh youth will be skilled over five years.
The government will also provide financial support of up to Rs 10 lakh for higher education in domestic institutions.
FM Sitharaman announced a Rs 2 lakh-crore PM package of five schemes to facilitate employment and skilling. A provision of Rs 1.48 lakh crore has been made for education, employment, and skilling.
The various schemes are being brought in a major push to employment generation as the opposition has been attacking the Centre over the issue.
She announced that working women hostels will be set up in the country to promote women’s participation in the workforce.
She added that the government will provide funds to the private sector, domain experts and others for developing climate-resilient seeds.
An already existing scheme — MGNREGA (Mahatma Gandhi National Rural Employment Guarantee) — aims to provide 100 days of wage employment in a particular fiscal year to at least one member of every household whose adult members seek manual work.