Union Budget 2024: Govt to offer first month wage up to Rs. 15,000 to first time employees

Announcing the Union Budget 2024 on Tuesday, Finance Minister Nirmala Sitharaman stated that under the employment-linked PM Package, first-time employees will receive their first month’s wage, up to Rs. 15,000, from the government through EPFO enrollment. She further added that freshers with a monthly salary of up to Rs. 1 lakh will be eligible for this support. The money will be disbursed in three tranches, and freshers across all formal sectors are entitled to receive this support. With this scheme, the government aims to assist approximately 2.1 lakh youth.

Additionally, the government plans to allocate Rs. 2 lakh crore for upskilling youth to meet the needs of the current job market. Commenting on this, Rishabh Khanna, CEO and co-founder of Suraasa, said, “This investment will provide educators with ample opportunities to upskill in trending areas. The focus on employment generation and the strategic package for upskilling Indian youth will bolster the aspirations of numerous job seekers, particularly within the teaching profession, and promote professional growth.”

Furthermore, the government aims to facilitate internship opportunities for about 5 crore youth across 500 top companies, exposing them to real-time business environments for 12 months. While the government will offer Rs. 5,000 per month along with a one-time support of Rs. 6,000 to the interns, the companies are expected to bear the training costs.

Under the PM Package, the government will incentivize both employers and employees through the EPFO to benefit about 30 lakh freshers, the finance minister said. According to her speech, this initiative will generate 50 lakh additional jobs in the sector.

The government also plans to upgrade 1,000 skilling institutions to upskill about 20 lakh youth over a period of five years. In addition, 25,000 students who haven’t benefited from any scheme will receive skilling loans of up to Rs. 7.5 lakh from the government.

Sitharaman emphasized that the government aims to create an inclusive workforce with increased participation of women. To achieve this, the government plans to set up hostels and crèches and facilitate skill development programs for women.