Union Budget: Job creation, incentives for employers and employees takes precedence

Three new schemes under employment-linked-incentives targeting at improving the job market for youth were announced by union finance minister Nirmala Sitharaman on Tuesday.

Presenting her seventh Union Budget, Sitaraman emphasized the need for job creation for youth.

“I am happy to announce the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for Rs 4.1 crore youth over a 5-year period with a central outlay of Rs 2 lakh crore. I will speak about them shortly, while more details may be seen in the annexure. This year, I have made a provision of Rs 1.48 lakh crore for education, employment and skilling,” said Sitaraman.

As many as 4.1 crore young Indians will benefit from schemes worth Rs 2 lakh crore. This year’s allocation of Rs 1.48 lakh crore is targeted at giving a boost to education, employment and skilling.

The Schemes include direct benefit transfer of up to Rs 15,000 to first-time employees, manufacturing incentives for job creation & reimbursement of up to Rs 3,000 per month for two years towards their EPFO contribution.

Sitharaman also announced a scheme for providing internship opportunities to one crore youth in 500 top companies across the country over a span of five years. She said that this opportunity will come with an internship allowance of Rs 5,000 per month along with one-time assistance of Rs 6,000.

Among the other announcements, she said financial support for loans upto Rs 10 lakh for higher education in domestic institutions will be offered to graduates to make them employable and Direct E-vouchers would be given to one lakh students every year.

THREE SCHEMES

Scheme A: First Timers

– One-month wage to all persons newly entering the workforce in all formal sectors

– Direct benefit transfer of one-month salary in three instalments to first-time employees, as registered in the EPFO, upto Rs 15,000

– Eligibility: Salaries of upto 1 lakh per month

– 210 lakh youth to benefit

Scheme B: Job Creation in manufacturing

– Incentivizes additional employment in the manufacturing sector

– Related to first-time employees

Incentives to both employee and the employer with respect to their EPFO contribution in the first 4 years of employment.

– 30 lakh youth and employers to benefit

Scheme C: Support to employers