New Delhi:
Finance Minister Nirmala Sitharaman has announced a new Employment Linked Scheme under the PM package to provide employment opportunities for the youth.
This scheme aims to support new employees through direct benefit transfer across three sub-schemes.
Eligibility for these benefits will be based on enrollment in the Employees’ Provident Fund Organization (EPFO).
Scheme-1: For First-Time Employment
Employees in the organized sector who are registered with the EPFO will receive one month’s salary. This will be a total of Rs 15,000, distributed in three installments through direct benefit transfer (DBT).
The salary limit for eligibility is up to Rs 1 lakh, and this scheme is expected to benefit 2.10 lakh youth.
Scheme-2: Employment Generation in the Manufacturing Sector
To boost employment in the manufacturing sector, incentives will be provided to both employers and employees. Under this scheme, the government will reimburse employers Rs 3,000 per month for their EPFO contributions for the next two years.
This scheme will benefit 30 lakh youth and help generate additional employment opportunities, ultimately benefiting 50 lakh people.
Additional Support to Employers
Under another scheme, the government will pay the employer’s EPFO contribution of up to Rs 3,000 per month for two years for every additional employee hired.
This initiative aims to further encourage employment growth.
Internship Opportunities for 1 Crore Youth
The government will also provide internship opportunities for 1 crore youth in the top 500 companies. Interns will receive an allowance of Rs 5,000 per month, plus an additional allowance of Rs 6,000.
Companies will also be required to spend on skill development under their Corporate Social Responsibility (CSR) obligations.
