In the Union Budget 2024-25, Finance Minister Smt. Nirmala Sitharaman unveiled three employment-linked incentive schemes under the Prime Minister’s package aimed at boosting job creation. The first scheme, “First Timers,” will provide a one-month wage of up to ₹15,000 to all new entrants in formal sectors, benefiting around 210 lakh youth. The second scheme focuses on job creation in the manufacturing sector by incentivizing employers to hire first-time employees, with benefits extending to 30 lakh youth and their employers. The third scheme supports employers across all sectors by reimbursing up to ₹3,000 per month for EPFO contributions for each additional employee hired, targeting an increase in 50 lakh jobs. These schemes are designed to enhance employment opportunities and provide financial support to both employees and employers, fostering a more robust job market.
Ministry of Finance
Government to Implement 3 Schemes for ‘Employment Linked Incentive’ as Part of the Prime Minister’s Package
Scheme to Provide One-Month Wage to All Persons Newly Entering the Workforce in All Formal Sectors Expected to Benefit 210 Lakh Youth
Scheme to Incentivize Additional Employment in the Manufacturing Sector Linked to the Employment of First-Time Employees Expected to Benefit 30 Lakh Youth
Employer-Focused Scheme Covering Additional Employment in All Sectors Expected to Incentivize Additional Employment of 50 Lakh Persons
Posted On: 23 JUL 2024 1:07PM by PIB Delhi
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 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 ` 15,000. The eligibility limit will be a salary of ` 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. Smt. 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 ` 1 lakh per month will be counted. The Government will reimburse to employers up to ` 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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