Union finance minister Nirmala Sitharaman has turned the lens on job creation and employability through a string of measures as creating jobs by the millions for years on end for the armies of youth that are joining the queue of hopefuls every year remains a central long run policy challenge in India.
All employees entering the workforce will get a wage of one month up to Rs 15,000 through the direct benefit transfer route. It will be provided in three tranches and the eligibility limit is of Rs 1 lakh salary. The scheme is expected to benefit 30 lakh youth entering employment, and their employers.
Government will reimburse Rs 3,000 per month to companies to cover their EPFO contributions for a period of 2 years for every extra hiring. It is likely to benefit around 5 million youths in various sectors, according to the minister.
For job creation in manufacturing, incentives will be given directly to the employees and the employers as per the EPFO contribution in the first four years of employment.
Sitharaman said the government will also allocate Rs 2 lakh crore for job creation over the next five years, benefitting 2.1 crore youths.
The minister also said that increasing the participation of women in the workforce is a priority. The Centre will set up hostels and partner various organizations for women skill programs.
A new internship programme that will allow corporations to employ interns at Rs 5,000 per month for a year for which companies will be able to use corporate social responsibility (CSR) funds.
Ten million youth is targeted to be skilled through this over five years.
She also announced the launch of an e-voucher scheme for loans of upto Rs 10 lakhs for higher education in domestic institutions given directly to 1 lakh students every year for annual interest subvention of 3 per cent of the loan amount.
Key highlights:
-20 lakh youth will be skilled over a 5 year period
-1000 ITIs will be upgraded in Hub and Spoke arrangements with outcome orientation
-The Model Skill Loan scheme will be revised to facilitate loans up to Rs 7.5 lakh with a guarantee from government promoted fund
-Centre will also collaborate with states and industry under Prime Minister's package for skilling programmes
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