In this Budget, we particularly focus on employment, skilling, MSMEs and the middle class', stated Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Union Budget 2024-25 in Parliament. Taking forward the theme of the first full-year Budget of the newly elected government, the Finance Minister announced the Prime Minister's package of 5 schemes and initiatives.
The package aims to facilitate employment, skilling, and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of Rs. 2 lakh crores. Smt. Sitharaman stated that the government will implement the following 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, Finance Minister added. Scheme A: First Timers- This scheme, which is expected to benefit 2.1 crore youth over 2 years, will provide one-month wage to all persons newly entering the workforce in all formal sectors.
The eligibility limit will be a salary of Rs. 1 lakh per month. Direct benefit transfer of one-month salary will be up to Rs. 15,000 in 3 installments to first-time employees, as EPFO. The employee, in turn, must undergo compulsory online financial literacy course before claiming the second installment. Further, the subsidy would have to be refunded by the employer if the employment to the first timer ends within 12 months of recruitment
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