Finance Minister Nirmala Sitharaman has announced five employment-linked schemes in her presentation of the Union Budget. These schemes are part of the PM’s package and will benefit 4.1 crore youth in the country, with an outlay of Rs 2 lakh crore.
Under one of these schemes, the government will undertake a direct transfer of one month salary to first time employees registered in the EPFO network. The payment will be given in three instalments with the cap at one month salary at Rs 1 lakh per month, benefiting 2.1 lakh youths.
To incentivise additional employment, incentives will be provided under another scheme of the package at a specified scale to EPFO compliance in the first year of employment in the manufacturing sector. The scheme is expected to benefit 30 lakh youth.
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Besides generating employment opportunities, the government will also emphasise on skilling individuals to address the issue of unskilled labor force in the country. It has set a target of skilling over 20 lakh youth in the next five years. The minister said the government will partner with 1,000 institutes to achieve this objective.
The speech also included new initiatives that will facilitate higher women participation in the workforce by establishing working women hostels and creches, and organising women specific skilling programs. To further support employment and skilling, the government will provide financial support for loans up to Rs 10 lakh in domestic institutions for education.
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Announcement of these schemes come after the backlash faced by the central government over issues of unemployment and unskilled labor force in the country during the Lok Sabha elections this year. These issues played a major role in Bhartiya Janta Party (BJP) settling with only 240 seats, and relying on its allies to form a coalition government at the Centre.
