Union Budget 2024 Prioritizes Employment & Skilling Five schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a five-year period with a central outlay of INR 2 lakh crore was announced
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Presenting the seventh Union Budget statement in Parliament, finance minister Nirmala Sitharaman highlighted the focus on employment, skilling and the middle class. Five schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a five-year period with a central outlay of INR 2 lakh crore was announced and an additional allocation of INR 1.48 lakh crore for education, employment and skilling was made.
Schemes
Government will implement the following three schemes for 'Employment Linked Incentive', as part of the Prime Minister's package. These will be based on enrolment in the EPFO, and focus on recognition of first-time employees and support to employees and employers. The first Timers scheme will provide one-month wage to all persons newly entering the workforce in all formal sectors. The direct benefit transfer of one-month salary in three installments to first-time employees, as registered in the EPFO, will be up to INR 15,000.
Job creation in the manufacturing scheme will incentivize 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 the employer with respect to their EPFO contribution in the first four years of employment.
The support to employers scheme will cover additional employment in all sectors. All additional employment within a salary of INR 1 lakh per month will be counted. The government will reimburse to employers up to INR 3,000 per month for two years towards their EPFO contribution for each additional employee.
Women in workforce & skilling
The government will facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry, and establishing creches. In addition, the partnership will seek to organize women-specific skilling programmes, and promotion of market access for women SHG enterprises.
A new centrally sponsored scheme will be in place for skilling in collaboration with state governments and industry. As many as 20 lakh youth will be skilled over a five-year period. Approximately 1,000 industrial training Institutes will be upgraded in hub and spoke arrangements with outcome orientation. Course content and design will be aligned to the skill needs of industry, and new courses will be introduced for emerging needs.
The Model Skill Loan Scheme will be revised to facilitate loans up to INR 7.5 lakh with a guarantee from a government promoted Fund. This measure is expected to help 25,000 students every year.
"The impact of these measures on skilling, employment, and job creation will be profound. By incentivizing job creation in the manufacturing sector through a scheme linked to the employment of first-time employees, the budget addresses a critical need for fresh talent in a vital industry. The comprehensive approach ensures that the youth are not only equipped with the necessary skills but also provided with financial support as they transition into formal employment. This dual focus on skilling and financial assistance will help bridge the gap between education and employability, making the workforce more competitive and resilient," said Ramesh Alluri Reddy, CEO at TeamLease Degree Apprenticeship.
