The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman on 23rd July in Parliament, demonstrates a comprehensive approach towards enhancing employment opportunities and skilling initiatives. By introducing targeted schemes for first-time employees, promoting job creation in manufacturing, and supporting employers, the budget aims to address the evolving needs of the workforce. Additionally, the focus on women’s participation in the workforce and significant investments in skilling and educational loans reflect the government’s commitment to building a skilled and resilient workforce.
Employment Linked Incentive Schemes
The Union Budget 2024-25 has introduced three comprehensive schemes under the ‘Employment Linked Incentive’ initiative, which is a part of the Prime Minister’s package. These schemes are designed to encourage the enrolment of first-time employees in the Employees’ Provident Fund Organization (EPFO) and provide support to both employees and employers.
1. Scheme A: First Timers
– Objective: To support individuals newly entering the workforce.
– Incentive: A direct benefit transfer of one-month salary, up to ₹15,000, paid in three installments.
– Eligibility: First-time employees registered in the EPFO with a salary limit of ₹1 lakh per month.
– Impact: Expected to benefit 210 lakh youth across various formal sectors.
2. Scheme B: Job Creation in Manufacturing
– Objective: To incentivize job creation in the manufacturing sector, particularly for first-time employees.
– Incentive: A specified incentive scale paid directly to both employees and employers regarding their EPFO contributions for the first four years of employment.
– Impact: Aimed at benefiting 30 lakh youth and their employers, promoting substantial job creation in manufacturing.
3. Scheme C: Support to Employers
– Objective: To provide financial support to employers across all sectors for additional employment.
– Incentive: Government reimbursement up to ₹3,000 per month for two years towards the EPFO contribution for each additional employee with a salary limit of ₹1 lakh per month.
– Impact: Expected to incentivize the employment of 50 lakh individuals.
Promoting Participation of Women in the Workforce
The budget also highlights measures to increase the participation of women in the workforce. These include:
– Working Women Hostels: Establishment of hostels in collaboration with the industry.
– Creches: Setting up creches to support working mothers.
– Women-Specific Skilling Programs: Organizing programs tailored to women’s needs and promoting market access for women Self-Help Group (SHG) enterprises.
Skilling Programs and Education Initiatives
The Union Budget 2024-25 introduces significant initiatives aimed at enhancing the skills and educational opportunities for the youth, aligning with industry needs and emerging technological fields.
1. New Skilling Scheme
– Objective: To skill 20 lakh youth over five years through a centrally sponsored scheme in collaboration with state governments and industries.
– Infrastructure: Upgrading 1,000 Industrial Training Institutes (ITIs) into hub-and-spoke arrangements focused on outcome orientation.
– Course Content: Courses will be designed to meet industry skill requirements, with new courses introduced for emerging needs.
2. Skilling Loans
– Revised Scheme: The Model Skill Loan Scheme will be revised to facilitate loans up to ₹7.5 lakh, guaranteed by a government-promoted fund.
– Impact: Expected to help 25,000 students annually.
3. Education Loans
– Financial Support: Introduction of financial support for education loans up to ₹10 lakh for higher education in domestic institutions.
– E-Vouchers: E-vouchers will be issued to 1 lakh students every year, providing an annual interest subvention of 3% of the loan amount.
By prioritizing skilling, job creation incentives, and women’s participation, the Union Budget empowers youth and strengthens India’s future workforce.
–Bhanoji Rao G
