Govt to launch three employment-linked schemes: FM

Finance Minister Nirmala Sitharaman has announced three new schemes that give employment-linked incentives.

The Finance Minister said “our government will implement the following three schemes for employment -linked incentive as part of the Prime Minister’s package enrollment in the EPF, focus on recognition of first time employees, and support to employees and employers scheme.” As per the FM, this scheme will provide a month’s wage to everyone newly entering the workforce in all formal sectors.

The scheme aims to create jobs in the manufacturing sector by incentivising the hiring of first-time employees. Incentives will be provided directly to employees and employers based on EPA contributions during the first four years of employment, benefiting 3 million youths and their employers.

The “Support to Employers” scheme aims to promote additional employment across all sectors. Employers will receive reimbursement of up to ₹3,000 per month for two years for EPF contributions for each additional employee earning up to ₹1 lakh per month.

This initiative is expected to create jobs for 1.5 million individuals.