Published on 19 Mar 2025
• Five key schemes and initiatives have been announced in the Budget with an outlay of Rs. 2 lakh crore.
• Three of these (Scheme A, B and C) will be implemented through the Employee Provident Fund Organisation (EPFO), encouraging workforce formalisation by incentivizing both employers and employees.
• Scheme A: Targets first-time employees in the formal sector registered with EPFO.
This scheme offers a one-month wage (up to Rs. 15,000) in three instalments.
Scheme B: Focuses on the manufacturing sector and offers benefits with respect to EPFO contributions during the first four years of employment of first-time employees.
Employees with salaries up to Rs. 1 lakh will be eligible.
Scheme C: Provides support to employers by reimbursing Rs. 3,000 per month for two years towards their EPFO contribution for each additional employee with a salary of up to Rs. 1 lakh per month.
• Scheme D: A centrally sponsored scheme for skilling 20 lakh youth over five years, along with upgrading 1,000 Industrial Training Institutes to align with industry skill needs.
• Scheme E: Offers internship opportunities to one crore youth in 500 top companies over the next five years, with an internship allowance of Rs. 5,000 per month.
Prime Minister’s Package - Employment Linked Incentives
employment
skill development
training
manufacturing sector
industries