While presenting the Union Budget for 2024-25, the Finance Minister Finance Minister Nirmala Sitharaman has announced several initiatives to boost skilling and creation of jobs with launching of many schemes for the same. Government has launched five various schemes which will be crucial in the field of job creation and skill development with first time job achievers.
She has announced to provide internship opportunities in 500 top companies to 1 crore youth in 5 years. Apart from these, the government has announced plans for skilling in collaboration with State governments and industry. Under the scheme, the government has aimed that 20 lakh youth will be skilled over a 5-year period and 1,000 Industrial Training Institutes. Here are main takeaways from the Union Budget for the education and jobs sector.
To give a boost to the job and employment for the youth of the country, the government has decided to launch three Employment Linked Incentives which will focus on recognition of first-time employees, and support to employees and employers.
Scheme A: First Timers
The Union Finance Minister said that this scheme will provide one-month wage to all persons newly entering the workforce in all formal sectors. The direct benefit transfer of one-month salary in 3 installments 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. Government hopes that the scheme is expected to benefit 210 lakh youth across the country.
Scheme B: Job Creation in manufacturing
According to the Finance Minister, this scheme will incentivize additional employment in the manufacturing sector, linked to the employment of first-time employees. Under this scheme, an incentive will be provided at specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first 4 years of employment. The scheme is expected to benefit 30 lakh youth entering employment and their employers.
Scheme C: Support to employers
According to the Budget 2024, this employer-focused scheme will cover additional employment in all sectors. According to the Finance Minister, all additional employment within a salary of Rs.1 lakh per month will be counted. The Government will reimburse to employers up to Rs. 3,000 per month for 2 years towards their EPFO contribution for each additional employee. “The scheme is expected to incentivize additional employment of 50 lakh persons' ', she added.
Internship Opportunities for 1 Cr youth
In a major thrust to boost employment in the country, the Finance Minister has announced that the Government will launch a comprehensive scheme for providing internship opportunities in top companies. According to the budget highlights, this will be the 5th scheme under the Prime Minister’s package.
The Union Finance Minister, Smt. Nirmala Sitharaman said that the scheme will provide internship opportunities in 500 top companies to 1 crore youth in 5 years. They will gain exposure for 12 months to real-life business environments, varied professions and employment opportunities, she said.
According to the scheme, an internship allowance of Rs. 5,000 per month along with a one-time assistance of Rs. 6,000 will be provided to the youth. Companies will be expected to bear the training cost and 10 per cent of the internship cost from their CSR funds.
Centrally Sponsored Scheme: 20 Lakh Youth to Be Skilled
In a major step, the Government has announced that 20 lakh youth will be skilled over a 5-year period and 1,000 Industrial Training Institutes. Union Finance Minister, Smt. Nirmala Sitharaman said that a new centrally sponsored scheme was the 4th scheme under the Prime Minister’s package, for skilling in collaboration with State governments and industry.
It has been said that the course content and design will be aligned to the skill needs of industry and new courses will be introduced for emerging needs. The Model Skill Loan Scheme will be revised to facilitate loans up to Rs. 7.5 lakh with a guarantee from a government promoted Fund. This measure is expected to help 25,000 students every year.
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