One month free salary for freshers: Know eligibility and other details of employment-linked incentive scheme announced in Budget 2024
Finance Minister Nirmala Sitharaman said in the Union Budget 2024-25 that 30 lakh freshers entering the employment market will get incentives in the form of a one-month provident fund (PF) payment. This project aims to help first-time job applicants, possibly impacting 2.1 crore young people.
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On Tuesday, July 23 while presenting Budget 2024, Finance Minister Nirmala Sitharaman announced changes in tax slabs, funds for Bihar and Andhra Pradesh, education, skilling, and gold custom duty among others.
The FM also announced three employment-linked incentive schemes.
Finance Minister Nirmala Sitharaman said in the Union Budget 2024-25 that 30 lakh freshers entering the employment market will get incentives in the form of a one-month provident fund (PF) payment. This project aims to help first-time job applicants, possibly impacting 2.1 crore young people.
The budget focuses a strong emphasis on job growth in the industrial sector. To increase employment, money will be granted to the private sector and domain specialists to create climate-resilient seeds.
Employer support is another important part of the Budget. New working women hostels will be created around the country to encourage women to enter the workforce.
How much amount will freshers get as a free salary?
As part of the Centre's employment-linked incentive plan, first-time workers in the formal sector would receive a one-month pay subsidy of up to Rs 15,000, Sitharaman declared in the Budget.
What is the eligibility?
“First-timers have a learning curve before they become fully productive,” she said, noting that the subsidy is targeted to benefit both the employees and employers in hiring freshers.
The pay subsidy policy applies to newcomers in all official industries, as long as their monthly income does not exceed Rs one lakh.
What do freshers need to do?
The employees must be enrolled with the EPFO, or Employees' Provident Fund Organisation, which manages a retirement benefit system for salaried employees in India.
How the free wages will be paid?
The pay subsidy will be provided to employees in three installments. After the first installment, new recruits must complete a mandatory online Financial Literacy course to be eligible for the second installment of the subsidy.
Sitharaman also announced a paid internship scheme. Under this arrangement, interns would get a monthly stipend of Rs 5,000. Additionally, the Centre intends to provide them with a one-time aid of Rs 6,000 to enable them to begin their professions.
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