During the Union Budget 2024-25 presentation, Finance Minister Nirmala Sitharaman announced introduced three new schemes under the Employment-Linked Incentive (ELI) as part of the Prime Minister’s package.
- Scheme A: First-Time Employees: Eligible first-time employees will receive a direct benefit transfer of one-month salary, up to Rs. 15,000, in three installments. The scheme targets those earning up to Rs. 1 lakh per month and is expected to benefit 2.1 crore youth.
- Scheme B: Manufacturing Sector Incentives: Focused on the manufacturing sector, this scheme will provide incentives to both employees and employers based on their EPFO contributions for the first four years of employment. It aims to encourage the hiring of first-time employees and is projected to benefit 30 lakh youth.
- Scheme C: Employer Support: This employer-focused scheme covers additional employment across all sectors. Employers will receive reimbursements of up to Rs. 3,000 per month for two years towards EPFO contributions for each additional employee with a salary up to Rs. 1 lakh per month. The scheme is expected to incentivize the employment of 50 lakh individuals. for two years towards EPFO contributions for each additional employee, easing the financial burden on employers and promoting workforce expansion.
