Union Budget 2024: EPFO-Registered Employees To Receive One-Time Benefit Up To Rs 15,000
EPFO-Registered Employees: EPFO's new initiative of a broader "Employment Linked Incentive" package have a combined central outlay of Rs 1.07 lakh crore
Union Budget 2024: The government announced three major schemes on Tuesday aimed at boosting employment through the Employees' Provident Fund Organisation (EPFO) for newcomers in the organised sector. The initiatives, part of a broader "Employment Linked Incentive" package, have a combined central outlay of Rs 1.07 lakh crore.
Finance Minister Nirmala Sitharaman revealed the schemes during her Budget speech in the Lok Sabha. The measures are designed to support first-time employees and incentivise job creation, she said.
Scheme-A will offer a one-time benefit of up to Rs 15,000 to individuals entering the formal workforce for the first time. This direct benefit transfer will be disbursed in three instalments and is applicable to employees with a monthly salary up to Rs 1 lakh. The scheme is projected to benefit about 21 million youth.
Scheme-B focuses on job creation within the manufacturing sector. It will provide financial incentives to both employees and employers based on EPFO contributions for the first four years of employment. This scheme is expected to support around 3 million new jobs in manufacturing.
Scheme-C aims to support employers across all sectors by reimbursing up to Rs 3,000 per month for two years towards EPFO contributions for each additional employee hired. This scheme is anticipated to create 5 million new job opportunities.
The total financial commitment for these schemes is distributed as follows: Rs 23,000 crore for Scheme-A, Rs 52,000 crore for Scheme-B, and Rs 32,000 crore for Scheme-C.
Sitharaman also highlighted plans to enhance labour services through a comprehensive integration of the e-Shram portal with other employment and skilling platforms. This initiative will include open architecture databases to address labor market changes and connect job seekers with potential employers.
Additionally, the government will revamp the ShramSuvidha and Samadhan portals to improve compliance for industry and trade. Sitharaman noted the progress of the committee reviewing the New Pension Scheme (NPS) and expressed satisfaction with the constructive approach of the Staff Side of the National Council of the Joint Consultative Machinery for Central Government Employees.
Efforts to increase female workforce participation will include setting up working women hostels in collaboration with industry, establishing crèches, and promoting women-specific skilling programs and market access for women’s Self-Help Group enterprises.
The EPFO also reported a record net addition of 19.5 lakh members in May 2024, the highest since the payroll data began in April 2018. This reflects a 19.62 per cent year-on-year increase and a 10.96 per cent rise from the previous month. The majority of new members, 58.37 percent, are in the 18-25 age group, continuing the trend of youth predominating among first-time job seekers.
Top Headlines
Trending News
