The Union Budget 2024-25 was released on July 23, 2024 with major initiatives for EPFO employees. In her Budget speech, Union Finance Minister Nirmala Sitharaman announced three employment-linked incentive schemes.
These are aimed at increasing hiring and recognizing the contributions of first-time employees. These schemes are closely tied to enrolment in the Employees’ Provident Fund Organisation (EPFO).
Scheme A: Incentives for New Employees
- Objective: To provide support to fresh entrants into the workforce.
- Beneficiaries: All persons newly entering the formal sector.
- Direct Benefit Transfer (DBT): First-time employees registered with the EPFO will receive one month’s salary in three installments, up to ₹15,000.
- Eligibility: The scheme applies to individuals with a monthly salary of less than ₹1 lakh.
- Learning Curve Support: Recognizing that new employees often have a learning curve before becoming fully productive, this subsidy aims to ease their transition.
- Compulsory Financial Literacy Course: To avail of the second installment, employees must complete an online Financial Literacy course.
- Refund Clause: If employment with the first-time employee ends within 12 months of recruitment, the employer must refund the subsidy.
- Duration: Scheme A will be applicable for two years.
Scheme B: Job Creation in Manufacturing
- Objective: To incentivize additional employment in the manufacturing sector.
- Eligibility for Employers: Corporate and non-corporate employers with a three-year track record of EPFO contributions.
- Baseline Requirement: Employers must hire either 50 previously non-EPFO enrolled workers or 25% of their existing workforce, whichever is higher.
- Employer and Employee Incentives: Both the employer and the employee will receive incentives directly related to their EPFO contributions during the first four years of employment.
- Expected Impact: Scheme B aims to benefit 30 lakh youth entering employment and their employers.
Also Watch: How Gen AI Transforms L&D with Predictive Analytics, Click Here
Scheme C: Support to Employers
- Objective: To encourage additional employment across all sectors.
- Coverage: Applies to employers in all sectors.
- Details: The scheme provides support to employers who create new jobs.
- Overall Impact: By incentivizing employers, Scheme C contributes to overall job growth.
EPFO: Total Allocation
The government has allocated a total of ₹1.07 lakh crore for these schemes, emphasizing its commitment to boosting employment opportunities for India’s youth.
These initiatives mirror the government’s proactive stance in creating economic growth, recognizing the potential of first-time employees, and supporting employers.
If you’re a fresh graduate or an employer looking to expand your workforce, keep an eye on these schemes—they might just be the catalyst for your next career move or business expansion.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here
