The Union Budget 2024 introduces four groundbreaking EPFO-linked employment schemes. These aim to create 4.1 crore jobs over five years. It has a planned investment worth ₹2 Lakh Crores. Scheme A is for employees entering the formal workforce for the first time. It will offer them up to ₹15,000 as a one-month salary contribution, paid in instalments. Scheme B incentivises companies to hire new employees by subsidising 8-24% of newcomers' salaries. Scheme C reimburses companies for EPFO contributions up to ₹3,000 per month per employee.
A fourth scheme targets India's top 500 companies, promoting internships with government and company contributions. These initiatives aim to formalise employment, upskill the workforce, and stimulate economic growth. The schemes particularly benefit young workers and those earning under ₹1 Lakh monthly. Only 21% of India's 64.3 crore employed people are regular salaried workers. Hence, the government's ambitious plan addresses this current employment landscape.
By encouraging formal employment and labour-intensive industries, these schemes create a potential domino effect. Increased jobs will lead to higher productivity, economic growth, and further job creation. This scheme offers opportunities for fresh graduates, job seekers, and employers alike. Thus, the success of these initiatives hinges on the collaborative efforts of both the government and Corporate India.
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