New Delhi. The government on Tuesday announced three schemes through EPFO for new workers entering the organized sector. The total central outlay for these schemes aimed at promoting employment is Rs 1.07 lakh crore. Finance Minister Nirmala Sitharaman said in her budget speech in the Lok Sabha, “Our government will implement three schemes for employment-related incentives under the Prime Minister’s package.” She said that these schemes will be based on enrollment in the Employees Provident Fund Organization (EPFO) and will give incentives to employees joining it for the first time. These will support employees and employers.
He told the House that the government will give one month’s salary under Scheme-A to those joining EPFO schemes for the first time in all organized sectors. Employees registering for the first time in EPFO will be given one month’s salary in three installments, which will be up to a maximum of Rs 15,000. The eligibility limit for taking advantage of this scheme will be one lakh rupees per month salary. 210 lakh youth are expected to benefit from this scheme.
Scheme-B, introduced for employment generation in the manufacturing sector, will encourage additional employment for employees joining EPFO for the first time. He said that both the employee and the employer will be given incentives in respect of their EPFO contribution in the first four years of employment. This scheme is expected to benefit 30 lakh youth entering employment and their employers.
Similarly, Scheme-C has been introduced to promote additional employment in all sectors by assisting employers. Under this scheme, the government will reimburse employers up to Rs 3,000 per month for two years for the EPFO contribution of each additional employee.
He said that this scheme is expected to provide additional employment to 50 lakh people. The total central outlay for the three schemes will be Rs 1.07 lakh crore (Rs 23,000 crore for Scheme-A, Rs 52,000 crore for Scheme-B and Rs 32,000 crore for Scheme-C).