MUMBAI:  During the presentation of the Union Budget for 2024-25, Finance Minister (FM) Nirmala Sitharaman announced three employment-linked schemes which aim to provide incentives and support to both employees and employers. 

In the first scheme, the FM said the government would 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," she said further explaining that the scheme focuses on supporting employees and is based on enrollment in the EPFO and aims to recognize first-time employees and offers incentives related to EPFO contributions for the initial four years of their employment.

The scheme B will incentivise additional employment in the manufacturing sector linked to the employment of first-time employees. This scheme targets the substantial hiring of first-time employees in the manufacturing sector. It will apply to all corporate and non-corporate employers with a three-year track record of EPFO contributions. "To be eligible, employers must hire either 50 new employees or 25% of their current workforce, whichever is higher," she said.

"An incentive will be provided at a 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 FM 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 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 also announced that working women hostels would be set up in the country to promote women's participation in the workforce and added that the government would provide funds to the private sector, domain experts and others for developing climate-resilient seeds.