Budgetary proposals with respect to Labour & Employment in the Union Budget 2024-2025

The finance minister in her budgetary proposals for 2024-2025 announced the following incentives and reforms with respect to Labour & Employment.

1.?Employment Linked Incentive

Following three schemes are announced in the budget for 2024-2025 by the Hon’ble Finance Minister in her budgetary speech. The objective of the said schemes is to provide incentive to employers and employees.

(i) Scheme A:

The following benefit shall be provided to the first-time employees.

1.?Direct Benefit Transfer of one month salary in three instalments, not exceeding Rs. 15,000, shall be provided.

2.?Employees registering with the Employees' Provident Fund Organisation (“EPFO”) shall be entitled to the benefit.

3.?First time employees drawing salary up to rupees Rs. 1,00,000 ( One Lakh ) are entitled to the benefit under this scheme.

(ii) Scheme B: Job Creation in Manufacturing

1.??Employers in the manufacturing sector are incentivized for job creation under this scheme.

2.?Both employers and first employees will be provided incentive as per their contributions to EPFO in the first four years of employment.

(iii) Scheme C: Support to employers

1.?Scheme C incentivize the employers across all the sectors for providing additional new employment. Employers who create new jobs within a salary limit of ?1 lakh per month will be eligible under this scheme.

2.?Central Government shall reimburse employers up to Rs.3,000 per month for two years towards their EPFO contributions in respect of each additional employee.

2. Labour Reforms: The following labour reforms are proposed in the budget for 2024-2025.

1.?E-Shram portal will be integrated with other portals to provide one-stop labour services solutions. It provides a mechanism to connect jobseekers with potential employers and skill providers.

2.?Shram Suvidha and Samadhan portals to be revamped to enhance ease of compliance for industry and trade.

3. Internship: The Prime minister’s internship scheme is introduced in the budget. As per the scheme:

1.??Internship Opportunities will be provided for 1 crore youth in five years in top companies.

2. Intern will be trained for a period of 12 months. An internship allowance Rs. 5000 per month shall be paid to the interns. Besides internship allowance, one time allowance of Rs. 6000 shall be paid. Companies can utilize 10% of CSR funds to fund this scheme.