Finance Minister Nirmala Sitharaman shared how the government is planning to support first-time employees.
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00:00One month wage to all persons newly entering the workforce in all formal sectors.
00:06Direct benefit transfer of one month's salary and internship allowance of 5000 per month.
00:14Our government will implement following three schemes for employment linked incentive
00:20as part of the Prime Minister's package. These will be based on enrolment in the EPFO
00:28and focus on recognition of first-time employees and support to employees and employers.
00:37Scheme A, first-timers. This scheme will provide one month wage to all persons
00:45newly entering the workforce in all formal sectors. Direct benefit transfer of one month's
00:53salary in three installments to first-time employees as registered in the EPFO will be
01:00up to 15,000 rupees. The eligibility limit will be a salary of 1 lakh per month.
01:09The scheme is expected to benefit 210 lakh youths.
01:14Scheme B, job creation in manufacturing. This scheme will incentivize additional employment
01:24in the manufacturing sector linked to the employment of first-time employees.
01:30An incentive will be provided at specified scale directly both to the employee and the employer
01:38with respect to the EPFO contribution in the first four years of employment.
01:45The scheme is expected to benefit 30 lakh youths entering employment and their employers.
01:54Scheme C, support to employers. This employer-focused scheme will cover
02:03additional employment in all sectors. All additional employment within a salary of
02:101 lakh per month will be counted. The government will reimburse to employers up to 3,000 rupees
02:19per month for two years towards the EPFO contribution for each additional employee.
02:27The scheme is expected to incentivize additional employment of 50 lakh persons.
02:36Skilling program. I am happy to announce a new centrally sponsored scheme
02:44as the fourth scheme under the Prime Minister's package for skilling in collaboration with state
02:51governments and industry. 20 lakh youth will be skilled over a five-year period.
03:00Internship in top companies. Our government will launch a comprehensive scheme for providing
03:07internship opportunities in 500 top companies to 1 crore youth in five years. They will gain
03:18exposure for 12 months to real-life business environment, varied professions and employment
03:26opportunities. Internship allowance of 5,000 rupees per month along with a one-time assistance
03:37of 6,000 rupees will be provided. Companies will be expected to bear the training cost
03:44and 10 percent of their internship cost from their CSR funds.