Massive Rs 2 Lakh Crore Boost Announced for Youth Employment and Skilling

Finance Minister Nirmala Sitharaman announced a significant Rs 2 lakh crore budget allocation for employment, skilling, and other opportunities targeting 4.1 crore youth. Several schemes, including wage incentives for first-time employees and special provisions for women's participation in the workforce, are part of the Prime Minister's package to generate ample job opportunities.

In a major push for employment and skilling, Finance Minister Nirmala Sitharaman announced a Rs 2 lakh crore outlay for numerous schemes targeting 4.1 crore youth in the Budget for 2024-25.

During her Budget speech, Sitharaman stated that 'employment and skilling' are among the government's top nine priorities to generate ample opportunities for all. The initiatives aim to incentivize both employees and employers.

'I am pleased to announce the Prime Minister's package of five schemes and initiatives to facilitate employment, skilling, and other opportunities for 4.1 crore youth over a five-year period with a central outlay of Rs 2 lakh crore,' she declared.

For FY25, the finance minister has allocated Rs 1.48 lakh crore for education, employment, and skilling.

The government will implement three 'Employment Linked Incentive' schemes under the Prime Minister's package. These will be based on EPFO enrolment and focus on recognizing first-time employees and supporting both employees and employers, added Sitharaman.

A new scheme will provide a one-month wage to all newly employed individuals in formal sectors, with a direct benefit transfer of up to Rs 15,000 spread over three instalments for first-time employees earning a salary up to Rs 1 lakh per month. The scheme is expected to benefit 210 lakh youth.

Another scheme will incentivize additional employment in the manufacturing sector, linked to first-time employees. Employers and employees will receive specified-scale incentives towards their EPFO contributions in the first four years, benefiting 30 lakh youth and their employers.

A third employer-focused scheme will cover all sectors. The government will reimburse employers up to Rs 3,000 per month for two years for each additional employee earning up to Rs 1 lakh per month, incentivizing 50 lakh additional employments.

To boost women's workforce participation, the government will set up working women's hostels and establish creches through industry collaboration, while also organizing women-specific skilling programs and promoting market access for women SHG enterprises.

Sitharaman also announced a centrally sponsored skilling scheme under the Prime Minister's package, in collaboration with state governments and industry, aiming to skill 20 lakh youth over a five-year period and upgrade 1,000 ITIs. A 'model skill loan scheme' will be tweaked to facilitate loans up to Rs 7.5 lakh with government-backed guarantees, expected to aid 25,000 students annually.

(With inputs from agencies.)