Finance Minister Nirmala Sitharaman today announced that the government will give one-month's salary to all the new employees entering the workforce. The amount will be provided to the employees as Provident Fund contribution.
"The scheme is meant for all persons entering the workforce in all sectors. It will benefit 210 lakh youths," Ms Sitharaman said while presenting Budget 2024 in the parliament.
Discontent over job opportunities was seen as a key reason for Prime Minister Narendra Modi's party, the BJP, failing to win a majority on its own in the general elections, and returning to power only with the support of allies.
While presenting the Union Budget for 2024-25, the Finance Minister announced three employment-linked schemes.
The first scheme, Ms Sitharaman said will provide one month's wage to those entering the workforce in all sectors. 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.
Scheme B 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.
The Finance Minister said the scheme C will cover additional employment in all sectors.
"All additional employment within a salary of Rs 1 lakh per month will be counted," she said, adding that the government will reimburse to employers up to Rs 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.
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.