 "Budget 2024: You can get Rs 15,000 from govt on entering your first job if your salary is up to Rs 1 lakh")
Finance Minister Nirmala Sitharaman, in presenting the Union Budget 2024, announced an attractive policy for first-time employees– i.e, freshers who are just entering the work force.
The finance minister said that as part of the focus on employment and skill development, one of the top priorities of Budget 2024, the government will provide one month’s salary to all first-timers upon their entry in formal sectors as well as in manufacturing.
Who is eligible?
“This scheme will provide one month wage to all persons newly-entering the workforce in all formal sectors,” she said.
Sitharaman then elaborated, saying that a direct benefit transfer (DBT) of one month’s salary, up to Rs 15,000, will be provided in three installments. The eligibility limit for this benefit will be a salary of Rs 1 lakh per month, and it is expected to benefit 210 lakh youths. The employees must be registered with the Employees Provident Fund Organisation to receive the benefits.
For manufacturing sector freshers
Speaking of the job creation in manufacturing scheme, she said, it will incentivise additional employment in the manufacturing sector, linked to the employment of first-time employees. An incentive will be provided at specified scale directly both to the employee and to the employer with respect to the EPFO contribution in the first 4 years of employment," Sitharaman said.
The scheme is expected to benefit 30 lakh youth entering employment.
Support to employers for generating employment
Sitharaman also announced a scheme for extending support to employers. “This employer-focused scheme will cover additional employment in all sectors. All additional employment, within a salary of Rs 1 lakh per month, will be counted. The government will reimburse to employers upto Rs 3,000 per month for two years towards the EPFO contribution for each additional employee,” she said.
Impact Shorts
More ShortsAccording to the finance minister, the scheme is expected to incentivise the additional employment of 50 lakh people.
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