Announcing the Union Budget 2024-25, Finance Minister Nirmala Sitharaman made big announcements for first-time employees in a major push for job creation for the youth.

“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,” FM Sitharaman announced in her Budget 2024-25 speech today.

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FM Sitharaman said the Centre will float three employment-linked incentive schemes for employees and employers in her seventh consecutive Budget announcement. These schemes will be based on enrolment in the EPFO and focus on recognising first-time employees in particular.

Direct Transfer of One-Month Salary

The finance minister also announced a one-month wage to all persons newly entering the workplace in all formal sectors. “Direct Benefit Transfer of one month’s salary in 3 instalments to first-time employees as registered in the EPFO will be up to Rs 15,000. The eligibility limit will be a salary of Rs 1 lakh per month. The scheme will benefit 210 lakh youth,” FM Sitharaman stated in her speech.

“Job creation in the manufacturing sector will be incentivised through a scheme linked to the employment of first-time employees,” the finance minister stated in her speech.

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Govt To Incentivise Manufacturing Sector 

The Finance Minister said that job creation in the manufacturing sector will be incentivised through a scheme linked to the employment of first-time employees. This scheme will extend incentives to both employees and employers concerning EPFO contributions for the first four years of employment.

The scheme is set to benefit 30 lakh youth and cover additional employment in all sectors. The Centre will further reimburse employers up to Rs 3,000 per month for the coming two years towards EPFO contributions for each additional employee. This initiative aims to boost the additional employment of 50 lakh people across the country.