On: 23 JUL 2024 – Union Minister for Labour and Employment, Dr. Mansukh Mandaviya, expressed gratitude to Prime Minister Narendra Modi for the visionary Union Budget 2024-25, which will open new avenues for the welfare of farmers, the poor, youth, and women.
With a thematic focus on employment, skilling, MSMEs, and the middle class, the budget sets forth ambitious initiatives and incentives aimed at transforming India’s socio-economic landscape, he added.
Union Minister highlighted that, Prime Minister’s package of five schemes and initiatives stands as a testament to the government’s commitment to creating opportunities for 4.1 crore youth over the next five years with a central outlay of Rs. 2 lakh crore. This substantial investment underscores the government’s dedication to enhancing education, employment, and skilling, with a provision of Rs. 1.48 lakh crore specifically allocated for these purposes, he added.
Union Minister Dr. Mansukh Mandaviya emphasized that the announcements made in the Union Budget 2024-25 will play a crucial role in creating more employment opportunities for youth, skilling the labour force, and facilitating ease of doing business.
The comprehensive initiatives, such as the Employment Linked Incentive Schemes and substantial investments in education and skilling, are designed to generate numerous job opportunities across various sectors, he stated.
He further mentioned that by incentivizing first-time employees and supporting both employees and employers, the Government aims to integrate more individuals into the formal workforce.
Additionally, the integration of the e-shram portal with other welfare schemes and the revamping of Shram Suvidha and Samadhan portals will simplify compliance procedures, thereby enhancing the ease of doing business for industry and trade, he further mentioned.
Dr. Mandaviya expressed confidence that these measures, coupled with focused efforts to increase women’s participation in the workforce and support for MSMEs, are expected to create a more dynamic and skilled labour force, ultimately driving economic growth and development.
3 schemes for ‘Employment Linked Incentive’
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.
4th Scheme for skilling
Union Finance Minister, Smt. Nirmala Sitharaman has announced a new centrally sponsored scheme as the 4th scheme under the Prime Minister’s package, for skilling in collaboration with State governments and industry. While presenting the Union Budget 2024-25 in Parliament today, the Finance Minister said that 20 lakh youth will be skilled over a 5-year period and 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation. The Finance Minister stated that course content and design will be aligned to the skill needs of industry and new courses will be introduced for emerging needs.
With regard to skilling loans, the Finance Minister announced that the Model Skill Loan Scheme will be revised to facilitate loans up to ` 7.5 lakh with a guarantee from a government promoted Fund. This measure is expected to help 25,000 students every year.
4th Scheme for providing internship opportunities
The Government will launch a comprehensive scheme for providing internship opportunities in top companies. This will be the 5th scheme under the Prime Minister’s package.
While presenting the Union Budget 2024-25 in Parliament today, the Union Finance Minister, Smt. Nirmala Sitharaman announced that the scheme will provide internship opportunities in 500 top companies to 1 crore youth in 5 years. They will gain exposure for 12 months to real-life business environment, varied professions and employment opportunities, she said.
An internship allowance of ` 5,000 per month along with a one-time assistance of ` 6,000 will be provided to the youth. Companies will be expected to bear the training cost and 10 per cent of the internship cost from their CSR funds, the Finance Minister added.
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