The Union Budget 2024-25, presented by the Hon’ble Finance Minister outlines significant efforts for boosting employment in the country with Employment and Skilling being one of its’ priorities.
As part of the Prime Minister’s package, five key schemes and initiatives have been announced, supported by a massive central outlay of Rs. 2 lakh crore. The package will facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period. These initiatives aim at Employment Linked Incentives besides enhancing skilling, women’s workforce participation, support to MSMEs and strengthening capital infrastructure, collectively driving a significant positive impact on the nation’s employment scenario.
Three of these five schemes will be implemented through the Employee Provident Fund Organisation (EPFO), encouraging workforce formalization by incentivizing both employers and employees. These Employment Linked Incentive Schemes are designed to recognize first-time employees and provide comprehensive support to both employees and employers.
Scheme A: Targeting first-time employees in the formal sector registered with EPFO, this scheme offers a one-month wage (up to Rs. 15,000) in three instalments.
Scheme B: Focusing on job creation in manufacturing, this scheme incentivizes both employees and employers for the additional employment of first-time employees, offering benefits based on their EPFO contributions during the first four years of employment. Employees with salaries up to Rs. 1 lakh will be eligible.
Scheme C: Providing support to employers by reimbursing Rs. 3,000 per month for two years towards their EPFO contribution for each additional employee with a salary of up to Rs. 1 lakh per month.
The Budget also introduces major reforms for labour welfare, including the comprehensive integration of E-shram portals with other platforms, facilitating a one-stop solution for skill requirements, job roles, and connecting job aspirants with potential employers and skill providers. This will strongly facilitate establishing e-shram as one stop solution for labour welfare, employment, skilling etc.
Another significant announcement involves the revamping of the Shram Suvidha and Samadhan portals to streamline industry compliance processes and enhance the grievance redressal mechanisms for workers respectively.
The remaining two schemes under the Prime Minister’s package are also geared towards augmenting skilling and opportunities for internships, thereby enhancing employability:
Scheme D: A new centrally sponsored scheme announced for skilling 20 lakh youth over five years in collaboration with state governments and industry, along with upgrading 1,000 Industrial Training Institutes to align with industry skill needs.
Scheme E: Offering internship opportunities to one crore youth in 500 top companies over the next five years, with an internship allowance of Rs. 5,000 per month and a one-time assistance of Rs. 6,000, providing exposure to real-life business and professional environments.
To boost women’s participation in the workforce, the Budget proposes establishing working women hostels and crèches in collaboration with industry, alongside organizing women-specific skilling programs and promoting market access for women self-help group (SHG) enterprises.
Further initiatives announced in the Budget that will contribute to fostering a diverse and robust job market include, amongst others:
Job Creation through Infrastructure Projects: A significant increase in capital expenditure by 11% to ₹11.11 lakh crore is expected to generate numerous job opportunities across sectors such as construction, transportation, and logistics. This move is expected to address unemployment and underemployment in both urban and rural areas.
EPFO extends date for filing Applications regarding pension on Higher Wages
Encouraging Entrepreneurship: Financial support and tax benefits for start-ups and MSMEs will foster a culture of entrepreneurship, creating diverse job opportunities.
Rural Employment and Livelihoods: Increased funding for MGNREGA will ensure employment opportunities in rural areas, supporting rural communities and reducing migration to urban centres.
Promoting manufacturing & Services: Setting up of “plug and play” Industrial parks with complete infrastructure in 100 cities with twelve industrial parks to be developed under the National Industrial Corridor Development programme will promote new industries; thereby creating millions of jobs.
The 2024-25 Budget reflects a steadfast commitment to sustainable growth, creation of unprecedented opportunities for employment & self-employment, skill enhancement and social welfare laying a strong foundation for Viksit Bharat.
