Union Budget 2024: Three schemes announced under Employment-linked incentives; Rs 2 lkh cr announced for job creation

Finance Minister Nirmala Sitharaman while presenting the Union Budget announced three schemes under Employment-linked incentives and said the government will allocate Rs 2 lakh crore for job creation over the next five years.

Scheme A includes Direct Benefit Transfer of 1-month salary in 3 instalments up to Rs 15,000 to first-time employees registered in EPFO.

Scheme B revolves around job creation in manufacturing incentives that will be provided directly to both employee and employers as per their EPFO contribution, in the first 4 years of employment.


Scheme C includes Support to Employers: Reimbursement to employers up to 3,000 per month for 2 years towards their EPFO contribution for each additional employee.

The government announced a new centrally-sponsored scheme for skilling 20 lakh youth over the next five years. The minister said that model skilling loan scheme will be revised to facilitate loans up to Rs 7.5 lakh.

As part of boosting skilling efforts, 1,000 ITIs will be upgraded on the hub-and-spoke model. Besides, the government will provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions.

Sitharaman said the new centrally-sponsored scheme for skilling in collaboration with states and industry will train 20 lakh youth over a period of five years.

“The budget so far has addressed some of the key concerns that have been raised. Boost to jobs and skilling, MSMEs growth and ease of doing business have been a few of the important asks and the announcements did touch upon all of these,” said Dr Rumki Majumdar, Economist, Deloitte India.

By giving incentives to employers, the FM has ensured that job creation is addressed from both the demand side and supply side of the labour market, said Dr Majumdar.