Union Budget 2024: FM Sitharaman makes EPFO desirable for first-time employees. Here's how
Representational image of EPFO.
Union Budget 2024 New EPFO Scheme:India's Finance Minister Nirmala Sitharaman said that the government will be floating three employment-linked incentive schemes as part of the Employees' Provident Fund (EPF) to benefit the employees and employers.
The announcement was made by the finance minister on Tuesday (July 23) while presenting the Union Budget 2024 in the Parliament.
The new schemes announced will benefit first-time employees after they enrol in the EPFO. The schemes introduced are: Scheme A: One month's wage for freshers; Scheme B: Job creation in manufacturing; Scheme C: Support to employers.
One-month salary for first-time employees in EPFO
Under scheme A, the first-time employees will be provided one-month salary support.
As per the Direct Benefit Transfer (DBT) scheme, an amount equal to the employee's one month's salary, but not exceeding Rs 15,000, will be provided in three instalments.
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For this scheme, the eligibility limit has been set at Rs 1 lakh per month.The finance minister said that 30 lakh youth and their employers are likely to benefit from this scheme.
"Our government will implement the following three schemes for employment -linked incentive as part of the Prime Minister's package — enrollment in the EPF, focus on recognition of first time employees, and support to employees and employers scheme," said FM Sitharaman in her Budget speech.
"Direct Benefit Transfer of one month's salary in three instalments to first-time employees as registered in the EPFO will be up to Rs 15,000. The eligibility limit will be a salary of Rs 1 lakh per month," she added.
Employers to receive reimbursement of Rs3,000 every month: Sitharaman
The finance minister also spoke about the scheme which is aimed at creating jobs in the manufacturing sector, as per Scheme B.
As part of Scheme C, the employers will receive reimbursement of up to Rs 3,000 every month for two years in return for EPFO contributions made towards every new employee.
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"The scheme is meant for all persons entering the workforce in all sectors. It will benefit 210 lakh youths," said Sitharaman,while presentingBudget 2024.
(With inputs from agencies)