New Delhi, July 23, 2024: An outlay of Rs 2 lakh crore for several schemes related to employment, skilling and other opportunities targeting 4.1 crore youth was announced Tuesday by Finance Minister Nirmala Sitharaman in the Budget for 2024-25.
'Employment and skilling' is among the nine top priorities of the government for "generating ample opportunities for all" and the programmes are aimed to incentivise both employees as well as employers, Sitharaman said in her Budget speech.
"I am happy to announce the Prime Minister's package of five schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a five-year period with a central outlay of Rs 2 lakh crore," she said.
For FY25, the finance minister said a provision of Rs 1.48 lakh crore has been made for education, employment, and skilling.
She said the government will implement three 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," Sitharaman added.
Sharing the details, she said a new scheme for 'first timers' 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 three instalments to first-time employees, as registered in the EPFO, will be up to Rs 15,000. The eligibility limit will be a salary of Rs 1 lakh per month.
"The scheme is expected to benefit 210 lakh youth," Sitharaman said.
Under the 'job creation in manufacturing' scheme, she said the government will incentivise 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 four years of employment," the finance minister said, adding that the scheme is expected to benefit 30 lakh youth entering employment, and their employers.
A third scheme, 'support to employers' is an employer-focussed scheme will cover additional employment in all sectors.
All additional employment within a salary of Rs 1 lakh per month will be counted. The government will reimburse to employers up to Rs 3,000 per month for two years towards their EPFO contribution for each additional employee. The scheme is expected to incentivise additional employment of 50 lakh people.
In a bid to boost participation of women in the workforce, Sitharaman said the government will facilitate it through the setting up of working women's hostels in collaboration with the industry, and establishing creches.
In addition, the partnership will seek to organise women-specific skilling programmes, and promotion of market access for women SHG (self-help group) enterprises, she added.
The Union Budget also proposed a big thrust on the skilling programme with Sitharaman announcing a new centrally sponsored scheme -- the 4th scheme under the Prime Minister's package -- in collaboration with state governments and the industry.
She said 20 lakh youth will be skilled over a 5-year period and 1,000 Industrial Training Institutes (ITIs) will be upgraded in hub-and-spoke arrangements with outcome orientation.
The finance minister also said the 'model skill loan scheme' will be tweaked to facilitate loans up to Rs 7.5 lakh with a guarantee from a government promoted fund. "This measure is expected to help 25,000 students every year," she said.
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