Highlight
- SCHEME FOR FIRST-TIMERS
- The budget proposed a scheme for first-time employees that may provide a one-month wage (maximum Rs 15,000)
- This scheme is expected to benefit 2.1 crore youth in the country
The Union Finance Minister Nirmala Sitharaman, on the second day of the Budget Session 2024 tabled the full budget 2024-25 on the floor of the house. Since then, the allocation of the budget between various industries and sectors has been a focal point of discussion among policymakers, industry leaders, and the public. The budget has introduced several key measures aimed at boosting economic growth, fostering innovation, and addressing social challenges. There are some schemes allocated for the youth like the SCHEME FOR FIRST-TIMERS which we will discuss here in this article.
SCHEME FOR FIRST-TIMERS
The budget proposed a scheme for first-time employees that may provide a one-month wage (maximum Rs 15,000) a direct benefit transfer to new employees. The employees who are newly entering the workforce and registered with the Employees Provident Fund Organisation (EFPO) with a wages/salary of less than Rs 1 lakh per month will be eligible for this scheme. This scheme is expected to benefit 2.1 crore youth in the country.
- Subsidy Disbursement: The subsidy will be paid to the employee in three installments.
- Financial Literacy Course Requirement: Employees must complete a compulsory online Financial Literacy course before claiming the second installment.
- Refund Clause: If the employment of the first-time employee ends within 12 months of recruitment, the employer must refund the subsidy.
- Coverage: The scheme is expected to benefit approximately 1 crore (10 million) persons per annum.
- Duration: The scheme will be in effect for 2 years.
Also Read: Aadhaar Cuts e-KYC Costs by 95%, Boosts Financial Inclusion: Economic Survey
Conclusion
This initiative by the Union Government aimed to empower the youth who will kick-start their career by providing a subsidy of up to Rs 15,000 as a first month’s wage. This is expected to benefit up to 2.1 crore youth in the country. Some more schemes are allocated for the youth like support in skills, training, and internships where the government provides subsidies and support.
