The Union Budget 2024-25 reflects a forward-looking approach, prioritising critical sectors such as employment, skilling, MSMEs, and support for the middle class, Minister of State for Skill Development and Entrepreneurship (Independent Charge) Jayant Chaudhary said on Wednesday.
“For the first time ever, the Union Budget 2024 places a significant focus on employment-linked schemes, setting a new precedent for prioritising job creation and skilling in our nation. This landmark budget introduces innovative approaches to directly link incentives with employment generation, ensuring that economic growth translates into real, tangible opportunities for our youth,” Chaudhary said.
The Minister said the budget has allocated Rs 1.48 lakh crore specifically for education, employment, and skilling, underscoring the government’s commitment to these vital areas.
One of the standout features of this year’s budget is the introduction of three Employment-Linked Incentive schemes, he said.
“These schemes represent a pivotal move towards fostering collective growth and prosperity, as they are designed to directly link incentives with employment generation, thereby ensuring that the benefits of economic growth are widely shared,” the Minister said.
He said by focusing on these strategic areas, the government aims to create a robust ecosystem that not only addresses current employment challenges but also equips the youth with the necessary skills to thrive in a rapidly evolving job market.
The Minister said the initiatives are poised to stimulate the MSME sector, enhance the employability of the workforce, and provide much-needed support to the middle class, ultimately driving inclusive growth and sustainable development for the nation.
“Scheme A: One Month’s Wage for Freshers — This initiative provides a one-month wage upon joining the formal workforce, supported by a direct benefit transfer (DBT) equivalent to one month’s salary (up to ₹15,000) disbursed in three instalments. With a salary cap of ₹1 lakh per month, this scheme aims to support 210 lakh youth entering the workforce for the first time,” the Ministry of Skill Development and Entrepreneurship said.
“Scheme B: Job Creation in Manufacturing — By targeting first-time employees, this scheme incentivises job creation in the manufacturing sector. It offers incentives related to Employees’ PF Organisation (EPFO) contributions for both employees and employers during the first four years of employment, driving substantial job growth in this critical sector.”
“Scheme C: Support to Employers — Expected to benefit 30 lakh youth and additional employment across all sectors, this scheme reimburses employers up to ₹3,000 per month for two years for each additional employee’s EPFO contribution. This initiative is set to incentivise the employment of 50 lakh people, boosting overall employment rates,” the Ministry said.