New Delhi: Finance minister Nirmala Sitharaman’s announcement of 3 employment schemes in Budget 2024 brings the Employees’ Provident Fund Organisation (EPFO) to the centre of India’s new employment trajectory. By linking the schemes to EPFO incentives, employment generation in India will be quantified. Let’s try to understand the nature of these three employment schemes and how the EPFO incentives will work.
Employment Scheme A: EPFO credit via DBT
First-time employees enrolled in EPFO will be paid one month’s salary up to Rs 15,000 through direct benefit transfer in 3 instalments.
Eligible candidates should be earning up to Rs 1 lakh per month, said Sitharaman.
The second instalment will be credited once the employee has completed a compulsory course in financial literacy.
If the employee quits before completing 12 months in the job, the employer will have to refund the subsidy.
Scheme B: Manufacturing sector jobs
The finance minister said the government has devised a scheme to create jobs in the manufacturing sector
Employers in the manufacturing sector are required to hire 50 new staffers or 25 per cent of their existing workforce, whichever is more.
These employers will receive a subsidy similar to Scheme A for these new enrolments.
Prime Minister’s package worth ₹2 lakh crore central outlay announced
The package aims to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period
🔰Three schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s… pic.twitter.com/TQt5YreR4Q
— PIB India (@PIB_India) July 23, 2024
Scheme C for employers
The third scheme announced by the finance minister in Budget 2024, entails EPFO reimbursement to employers for provident fund contributions made to their staffers’ accounts.
These employee’s salary must not exceed Rs 1 lakh per month.
The government will only credit up to Rs 3,000 per month for every additional hiring in the previous year.
This subsidy will be applicable if a company whose staff strength is not more than 50, hires at least 2 staffers, or if a company with 50 or more employees adds 5 staffers in a year.
Finance minister Nirmala Sitharaman announced 3 new employment generation schemes linked to EPFO. Know how these will work. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
