The Budget 2024 introduced three new schemes aimed at incentivizing employment as part of the Prime Minister’s comprehensive economic package. These schemes are designed to encourage job creation, particularly in the formal sector, and support both employees and employers in various industries.
Scheme A – For First-Time Employees:
This scheme targets individuals entering the workforce for the first time in formal sectors. It provides a direct benefit transfer of up to Rs. 15,000, disbursed in three installments. The scheme is available to first-time employees registered with the Employees’ Provident Fund Organisation (EPFO). To be eligible, employees must have a salary limit of Rs. 1 lakh per month. The initiative aims to benefit approximately 210 lakh young individuals, encouraging them to enter the formal job market.
Scheme B – For the Manufacturing Sector:
Focused on the manufacturing sector, this scheme provides incentives for both employees and employers regarding their EPFO contributions during the first four years of employment. The goal is to stimulate growth in the manufacturing industry by reducing the cost burden on employers and providing job security to employees.
Scheme C – Support for Employers:
To further encourage employment, the government will reimburse employers up to Rs. 3,000 per month for two years for each additional employee they hire, earning a salary of up to Rs. 1 lakh per month. This reimbursement aims to alleviate the financial burden on businesses, particularly small and medium-sized enterprises, thereby fostering job creation and economic growth.
Details and Procedure:
The detailed procedure for availing these benefits will be provided once the Employees’ Provident Fund Organisation (EPFO) releases the official notification. This notification will outline the specific steps and requirements necessary for both employees and employers to access these incentives.