Budget 2024: FM announces 3 key initiatives to boost jobs

Under skilling and employment initiatives of the Modi 3.0 government, Finance Minister Nirmala Sitharaman has announced three schemes, which will directly benefit first-timers, facilitate job creation in manufacturing and support employers, the FM says in Parliament in her first Budget speech after Lok Sabha 2024 Elections.

A direct benefit transfer of 1-month salary in 3 instalments up to ₹15,000 to first-time employees registered in EPFO has been proposed, says the FM. Under job creation in manufacturing, the FM proposed the incentives to be provided directly to both employee and employer as per their EPFO contribution, the first 4 years of employment.

Under support to employers, the FM has proposed reimbursement to employers up to ₹3,000 per month for 2 years towards their EPFO contribution for each additional employee. As part of the employment and skilling initiative, the FM says a special focus will be put on women and students. The government has proposed "impetus towards higher participation of women in the workforce...revision of Model Skill Loan Scheme to help 25,000 students every year."

Under these initiatives, the government will set up working women's hostels and creches in collaboration with industry. The Model Skill Loan Scheme will be revised to facilitate loans up to ₹7.5 lakh with a guarantee from a government-promoted fund. "The initiative is expected to help 25,000 students every year."

The government has also proposed e-vouchers for loans up to ₹10 lakh crore for higher education in domestic institutions to be given directly to 1 lakh students every year for annual interest subvention of 3% of the loan amount.