In a significant move to boost employment, Union Finance Minister Nirmala Sitharaman announced on Tuesday that the government will provide a one-month wage to all persons newly entering the workplace in all formal sectors. This announcement was made during the presentation of the Union Budget 2024.
Sitharaman detailed the government's plan to directly transfer the amount to employees as part of their provident fund contribution. "One month's wage to all persons newly entering the workplace in all formal sectors. Direct Benefit Transfer of one month's salary in three instalments to first-time employees as registered in the EPFO will be up to ?15,000. The eligibility limit will be a salary of ?1 lakh per month. The scheme will benefit 210 lakh youth," she stated.
These measures are part of the Prime Minister's package for employment and skilling. In addition to the direct benefit transfer, the government announced further incentives for both employees and employers. These include:
- Direct incentives based on EPFO contributions for the first four years of employment.
- Reimbursement of up to ?3,000 per month for two years towards employers' EPFO contributions for each additional employee.
Sitharaman also announced the establishment of working women hostels across the country to promote women's participation in the workforce. Additionally, funds will be provided to the private sector, domain experts, and others for developing climate-resilient seeds, reflecting the government's commitment to innovation and sustainability.
Highlighting the Budget's focus on education, employment, and skilling, Sitharaman revealed that ?1.48 lakh crore has been allocated for these sectors in the 2024-'25 fiscal year.
She concluded by emphasizing the unique opportunity the Modi government has been given to steer India towards robust development and comprehensive prosperity. "People have given a unique opportunity to the Modi government to take India on the path of strong development and all-round prosperity," she said.
This Budget announcement underscores the government's strategic focus on employment generation, women's empowerment, and sustainable development, aiming to create a more inclusive and resilient economy.
