Budget 2024 - One Month’s Wage For New Hires And New Incentive Plan: How Govt Plans To Boost Job Creation

In a landmark move to stimulate job creation and enhance skill development across India, the Centre has unveiled a series of ambitious initiatives as part of Budget 2024.

Finance Minister Nirmala Sitharaman's announcement outlines a comprehensive strategy to foster employment opportunities and support skill-building efforts nationwide.

Key highlights from the budget include the introduction of three major schemes designed to boost employment:

First-Time Employment Scheme: This initiative offers one month's wage to new workforce entrants across all sectors, aiming to benefit 2.1 crore youths. Eligible individuals will receive a direct benefit transfer (DBT) of up to Rs 15,000, provided in three instalments, for those with a monthly salary of up to Rs 1 lakh.

Job Growth Incentive Plan: This innovative scheme targets both employees and employers during the first four years of employment. It includes reimbursement of Rs 3,000 per month to employers for EPFO contributions for each additional employee. This plan is expected to create 50 lakh new jobs and support 30 lakh youths, focusing on all employment with salaries up to Rs 1 lakh per month.

Model Skill Loan Scheme Revision: The government has significantly revised the Model Skill Loan Scheme, now offering loans up to Rs 7.5 lakh backed by a government guarantee fund. This revision is projected to benefit 25,000 students annually. Additionally, higher education loans up to Rs 10 lakh will be supported for domestic institutions, and 1 lakh students will receive e-vouchers each year.

Further enhancing workforce participation, particularly among women, the budget includes several key measures:

Working Women's Hostels and Crèches: Establishment of these facilities in collaboration with the industry to support working women.
Enhanced Skilling Programs: Support for women-led self-help groups (SHGs) and other skilling initiatives to boost female employment rates.