Hyderabad: Presenting Budget 2024, Finance Minister Nirmala Sitharaman announced that all persons newly entering the workforce in all formal sectors will get double salaries in their first month, as part of 'Prime Minister's Package for employment and skilling'.
She said they will receive a one-month salary of up to Rs 15,000 in three instalments directly credited to their bank accounts if they were registered with the Employees Provident Fund Organisation (EPFO).
She said the Budget was focused on employment, skilling, MSMEs, and the middle class. The Finance Minister added that the Prime Minister’s package of 5 schemes and initiatives for employment, skilling and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of 2 lakh crore.
She said the budget presented for the year has a provision of Rs. 1.48 lakh crore for education, employment and skilling initiatives.
Three of the five schemes from the package were tagged as ‘Employment Linked Incentive(ELI)’. The first scheme said it will benefit first time employees. "Direct benefit transfer of 1-month salary in 3 instalments up to ₹15,000 to first-time employees registered in EPFO," she said.
In the next scheme aimed at job creation in the manufacturing sector, she said the incentive will be provided to both the employee and the employer.
"Incentive to be provided directly to both employee and employer as per their EPFO contribution, in the first four years of employment," the Finance Minister said.
The third was drafted keeping in mind the requirement to support the employers. As per this scheme, "Reimbursement to employers up to 3,000 per month for 2 years towards their EPFO contribution for each additional employee," she said.
The fourth scheme under the Prime Minister’s package will be on 'skilling' and it will be carried out in collaboration with state governments and the industry. Under this initiative, 20 lakh youth will be 'skilled' over a 5-year period.
The last scheme under the package will be on internship opportunities. The internship will be offered in 500 top companies to 1 crore youth in 5 years
