Union finance minister Nirmala Sitharaman on Tuesday announced 3 new schemes to boost employment through the employees’ provident fund organisation (EFPO), focusing on recognition of first-time employees, and support to employees and employers.
Giving details about the schemes, Sitharaman said, “Our government will implement 3 schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package.”
She said that for the first timers the House that Scheme-A will provide one-month wage to all persons newly entering the workforce in all formal sectors and direct benefit transfer of one -month salary in 3 instalments to first-time employees will be up to Rs 15,000.
The eligibility limit will be a salary of Rs 1 lakh per month. The scheme is expected to benefit 210 lakh youth.
The government has introduced Scheme-B to encourage job creation in the manufacturing sector by providing incentives for employing first-time employees. Under this scheme, both the employee and the employer will receive benefits based on their EPFO contributions during the initial four years of employment.
It is anticipated that this scheme will benefit 30 lakh young people entering the workforce and their employers.
Scheme-C, on the other hand, aims to support employers by covering additional employment across all sectors. Any additional employment with a monthly salary of up to Rs 1 lakh will be considered under this scheme.
The government will reimburse to employers up to Rs 3,000 per month for 2 years towards their EPFO contribution for each additional employee.
The scheme is expected to incentivize additional employment of 50 lakh persons, she added.
The central government has allocated a total outlay of Rs 1.07 lakh crore for these three schemes, with Rs 23,000 crore for Scheme-A, Rs 52,000 crore for Scheme-B, and Rs 32,000 crore for Scheme-C.
Sitharaman said, “Our government will facilitate the provision of a wide array of services to labour, including those for employment and skilling.”
A comprehensive integration of e-shram portal with other portals will facilitate such one-stop solution, she said.
Open architecture databases for the rapidly changing labour market, skill requirements and available job roles, and a mechanism to connect job-aspirants with potential employers and skill providers will be covered in these services.
ShramSuvidha and Samadhan portals will be revamped to enhance ease of compliance for industry and trade.
She also told the House that the Committee to review the NPS (New Pension Scheme) has made considerable progress in its work.
“I am happy that the Staff Side of the National Council of the Joint Consultative Machinery for Central Government Employees have taken a constructive approach. A solution will be evolved which addresses the relevant issues while maintaining fiscal prudence to protect the common citizens,” she said.
She also stated that 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.
According to the latest payroll data, EPFO recorded the highest net addition of 19.50 lakh members in May 2024. This figure marks the highest addition since the inception of payroll data in April 2018, showcasing a significant milestone for the organisation.
Giving details about the schemes, Sitharaman said, “Our government will implement 3 schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package.”
She said that for the first timers the House that Scheme-A will provide one-month wage to all persons newly entering the workforce in all formal sectors and direct benefit transfer of one -month salary in 3 instalments to first-time employees will be up to Rs 15,000.
The eligibility limit will be a salary of Rs 1 lakh per month. The scheme is expected to benefit 210 lakh youth.
The government has introduced Scheme-B to encourage job creation in the manufacturing sector by providing incentives for employing first-time employees. Under this scheme, both the employee and the employer will receive benefits based on their EPFO contributions during the initial four years of employment.
It is anticipated that this scheme will benefit 30 lakh young people entering the workforce and their employers.
Scheme-C, on the other hand, aims to support employers by covering additional employment across all sectors. Any additional employment with a monthly salary of up to Rs 1 lakh will be considered under this scheme.
The government will reimburse to employers up to Rs 3,000 per month for 2 years towards their EPFO contribution for each additional employee.
The scheme is expected to incentivize additional employment of 50 lakh persons, she added.
The central government has allocated a total outlay of Rs 1.07 lakh crore for these three schemes, with Rs 23,000 crore for Scheme-A, Rs 52,000 crore for Scheme-B, and Rs 32,000 crore for Scheme-C.
Sitharaman said, “Our government will facilitate the provision of a wide array of services to labour, including those for employment and skilling.”
A comprehensive integration of e-shram portal with other portals will facilitate such one-stop solution, she said.
Open architecture databases for the rapidly changing labour market, skill requirements and available job roles, and a mechanism to connect job-aspirants with potential employers and skill providers will be covered in these services.
ShramSuvidha and Samadhan portals will be revamped to enhance ease of compliance for industry and trade.
She also told the House that the Committee to review the NPS (New Pension Scheme) has made considerable progress in its work.
“I am happy that the Staff Side of the National Council of the Joint Consultative Machinery for Central Government Employees have taken a constructive approach. A solution will be evolved which addresses the relevant issues while maintaining fiscal prudence to protect the common citizens,” she said.
She also stated that 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.
According to the latest payroll data, EPFO recorded the highest net addition of 19.50 lakh members in May 2024. This figure marks the highest addition since the inception of payroll data in April 2018, showcasing a significant milestone for the organisation.