The Union Budget 2024 introduces several transformative measures under its skilling priority with the aim to boost employment and skill development,. Finance Minister Nirmala Sitharaman has outlined a series of initiatives aimed at supporting new entrants into the workforce, assisting manufacturing jobs, and providing financial backing for education.
First Timers Scheme:
A significant highlight of the budget is the “First Timers Scheme,” which aims to support individuals newly entering the workforce across all formal sectors. The government will provide a wage subsidy equivalent to one month’s salary, disbursed in three installments through direct benefit transfer. This subsidy, up to Rs 15,000, will be available to employees earning up to Rs 1 lakh per month. The scheme is expected to benefit approximately 2.1 crore young individuals, providing crucial financial support as they transition into formal employment.
Manufacturing Jobs Assistance:
To bolster the manufacturing sector, the budget proposes an incentive program targeting both employees and employers. New hires in manufacturing jobs will receive direct incentives during the first four years of employment. This support is designed to encourage job creation and enhance industry participation, benefiting around 30 lakh youth and their employers. The initiative aims to stimulate growth in the manufacturing sector by making it more attractive for both new employees and businesses.
Support to Employers:
In addition to supporting employees, the budget includes measures to assist employers in expanding their workforce. For additional employment created in all sectors, with salaries up to Rs 1 lakh per month, the government will provide Rs 3,000 per month for two years to cover Employees’ Provident Fund Organization (EPFO) charges. This support is anticipated to incentivize the creation of up to 50 lakh new jobs, encouraging businesses to hire more staff and thus stimulate broader economic growth.
Skilling the Youth:
The budget also focuses on long-term skill development. Over the next five years, the government plans to skill 20 lakh youth, equipping them with the necessary skills to meet the demands of various industries. This initiative is expected to significantly enhance the employability of young individuals and address skill gaps in the labor market.
Education Loans and Financial Support:
To further support education and skill development, the budget introduces enhanced financial assistance for higher education. Students pursuing higher education in domestic institutions will be eligible for financial support up to Rs 10 lakh, with an annual interest subvention of 3 percent. This measure aims to ease the financial burden on students and encourage higher enrollment in educational programs.
