Budget 2024: Emphasis on skill development by Government, Aim to provide employment to 41 Million youth

Budget 2024: Unemployment has emerged as a major problem in recent years. In the last general elections, opposition parties made unemployment the biggest issue. Perhaps keeping this in mind, the government has announced several important initiatives and schemes for the youth in the budget.

This will benefit 41 million youth. An allocation of ₹1.48 lakh crore has been made for these schemes. The aim of these schemes is to encourage both employees and employers.
 

As part of the Prime Minister's package, the government will implement three schemes to promote employment. These will be based on enrollment in EPFO. The government will provide one month's salary to first-time job joiners.

fourth scheme under the Prime Minister's package is the announcement of skill programs. Under this, 2 million (20 lakh) youth will be trained under a new scheme for skill development. This program will be operated in collaboration with state governments and the industry.

Over the next five years, 1,000 industrial training institutes will be upgraded under the skill training program, with an emphasis on outcomes and quality. This includes a centrally sponsored scheme in collaboration with states and industry. Uttar Pradesh will benefit the most, as it has 71 government industrial training institutes.


A National Research Fund will be set up to support basic research and prototype development. A mechanism will be created for research and innovation conducted by the private sector on a commercial scale. An allocation of ₹1 lakh crore for this purpose was announced in the interim budget.


First Scheme: One Month's Salary for First-Time Job Seekers

• The government will provide first-time job seekers registered with the Employee Provident Fund Organization (EPFO) with one month's salary through direct benefit transfer.
• The salary will be given in three installments of ₹15,000 each, and this will be the maximum amount.
• This scheme will benefit 21 million (2.1 crore) youth over two years.
• It will apply to new youth joining as workers in all major formal work sectors.
• The eligibility limit to join this scheme will be a salary of ₹100,000 per month.
• If employment ends within 12 months, the subsidy amount must be returned to the employer.

Third Scheme: Employer Assistance

• Employers will be reimbursed up to ₹3,000 per month for EPFO contributions for each additional employee for two years.
• Employers must hire workers who are not already registered with EPFO.
• Companies that increase their workforce by at least two or five employees compared to the previous year will benefit from this scheme.
• This scheme is expected to create additional employment for 5 million (50 lakh) people.

Second Scheme: Employment Creation in the Manufacturing Sector

• The government will provide incentives to both employees and employers in the manufacturing sector.
• Incentives will be given based on their contributions to EPFO during the first four years of employment.
• This scheme will apply to employees earning up to ₹100,000 per month.
• It will benefit 3 million (30 lakh) youth entering the workforce each year.