The central government will give 1 month salary to the freshers joining workforce, said Finance Minister Nirmala Sitharaman while presenting the Budget for consecutive 7th time.
The amount will credited to the candidate through provident fund contribution.
“Government to set up three schemes for employment generation. Scheme for first-timers to provide one-month wage to all persons newly entering the workforce in all sectors. First-time employment scheme to benefit 2.1 crore lakh youths,” FM Sitharaman said.
This entails three types of scheme, the first one, scheme A is for the first timers. B and C is for the creation of jobs in manufacturing sector and for support to employee respectively, explained Sithraman.
First-time employees who join with the Employees Provident Fund Organization would receive a direct benefit transfer under Scheme A of one month’s salary, payable in three installments up to a maximum of Rs 15,000.
In Scheme B, incentives will be given directly to employers and employees in accordance with their EPFO contributions during the first four years of employment.
“The scheme is meant for all persons entering the workforce in all sectors. It will benefit 210 lakh youths,” Nirmala Sitharaman said.
Under Scheme C, companies will receive compensation for each new employee’s EPFO contribution. This compensation will go up to Rs 3,000 per month for two years.
Over a five-year period, 20 lakh youth would be skilled, according to the Finance Minister.
Additionally, the government would contribute up to Rs 10 lakh toward higher education at local universities.
A Rs 2 lakh-crore PM package including five projects was announced by FM Sitharaman to promote skill development and employment. Rs 1.48 lakh crore has been set aside for skill development, employment, and education.
The various programs are providing a significant boost to the creation of jobs.
