Government to launch three employment-linked schemes: FM Sitharaman in Union Budget speech

The government will launch three employment-linked schemes, Finance Minister Nirmala Sitharaman said while presenting the Union Budget for 2024-25 on Tuesday. These schemes will be based on enrolment in Employees' Provident Fund Organization (EPFO), Sitharaman said in the Lok Sabha.

"Our government will implement three schemes for employment-linked incentives," she said.

About scheme A, she said it will provide one month's wage to those entering the workforce in all sectors.

"Direct Benefit Transfer of one month's salary in three 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," she said, adding the scheme is expected to benefit 21 million youths.

The scheme B, she said, will incentivise additional employment into the manufacturing sector linked to the employment of first-time employees.

"An incentive will be provided at specified scale directly to the employee and employer with respect to the EPFO contribution in the first four years of employment. This scheme is expected to benefit 30 lakh youth and their employers," the minister said.

Sitharaman said the scheme C will cover additional employment in all sectors.

"All additional employment within a salary of ₹1 lakh per month will be counted," she said, adding that the government will reimburse to employers up to ₹3,000 per month for two years towards the EFPO contribution to each additional employee. The scheme is expected to incentivise additional employment of 50 lakh people.

Sitharaman also announced that the government will set up working women hostels in the country to promote women's participation in the workforce. She further added that government will provide funds to the private sector, domain experts and others for developing climate-resilient seeds.

An already existing similar scheme - MGNREGA (Mahatma Gandhi National Rural Employment Guarantee) helps to provide 100 days of wage employment to at least one member of every household whose adult members seek manual work in a particular fiscal year.