In the Union Budget 2024 announcement today, Union Minister of Finance Nirmala Sitharaman unveiled a comprehensive strategy focused on employment, skilling, and support for MSMEs and the middle class. Addressing the Lok Sabha, Sitharaman outlined a series of initiatives aimed at boosting job creation and enhancing the skills of the Indian workforce over the next five years.
Highlighting the four key pillars of the Union Budget 2024—Skilling, Employment, MSMEs, and the Middle Class—Sitharaman announced the Prime Minister’s package of five schemes and initiatives to create opportunities for 4.1 crore youth with a central outlay of Rs 2 lakh crore.
“Our government is committed to fostering employment and skilling opportunities, particularly for our youth. We are introducing targeted schemes to incentivize job creation, support first-time employees, and enhance the participation of women in the workforce,” Sitharaman stated.
Employment Linked Incentive Schemes in Union Budget 2024
Scheme A: First Timers
This initiative aims to support individuals entering the workforce for the first time across all formal sectors. First-time employees, as registered with the Employees’ Provident Fund Organisation (EPFO), will receive a direct benefit transfer equivalent to one month’s salary in three installments, capped at Rs 15,000. The scheme, which targets those earning up to Rs 1 lakh per month, is expected to benefit 210 lakh youth.
Scheme B: Job Creation in Manufacturing
Focusing on the manufacturing sector, this scheme will provide incentives for additional employment linked to the hiring of first-time employees. Both employees and employers will receive incentives related to EPFO contributions for the first four years of employment. This initiative aims to benefit 30 lakh youth and their employers.
Scheme C: Support to Employers
Designed to encourage employers across all sectors to create additional jobs, this scheme will reimburse employers up to Rs 3,000 per month for two years towards EPFO contributions for each additional employee earning up to Rs 1 lakh per month. The scheme is projected to incentivize the employment of 50 lakh individuals.
Enhancing Women’s Workforce Participation
To boost the participation of women in the workforce, the government will collaborate with industry partners to establish working women’s hostels and creches. Additionally, women-specific skilling programs and market access initiatives for Self-Help Group (SHG) enterprises will be promoted. Sitharaman emphasized a holistic approach to human resource development and social justice, stating that the government will adopt a saturation approach to ensure comprehensive coverage and impact.
New Skilling Programs Announced in Union Budget 2024
The Union Budget 2024 introduces a centrally sponsored scheme aimed at skilling 20 lakh youth over five years. In collaboration with state governments and industry, 1,000 Industrial Training Institutes (ITIs) will be upgraded using a hub-and-spoke model to align with industry needs and emerging job requirements.
Financial Support for Skilling and Education
The government will revise the Model Skill Loan Scheme to facilitate loans up to Rs 7.5 lakh, backed by a government-promoted fund, benefiting 25,000 students annually. Additionally, a financial support scheme for education loans up to Rs 10 lakh will be introduced for students pursuing higher education in domestic institutions. E-vouchers for annual interest subvention of 3% will be provided to 1 lakh students each year.
