Focus on employment, skilling makes HR experts, staffing agencies bullish on Budget

FM, in her budget speech, said that the Union Budget for 2024-25 has provided Rs 1.48 lakh crore for education, employment and skilling.

Staffing agencies and human resource (HR) experts have hailed Finance Minister Nirmala Sitharaman’s seventh Union Budget presented on July 23 for announcing focus on employment and skilling.

With focus on preparing a future-ready workforce, the FM said the government will launch a comprehensive scheme to offer internships in "500 top companies" to one crore youth in five years. An internship allowance of Rs 5,000 per month in addition to one-time assistance of Rs 6,000 will be provided, Sitharaman said.

"This significant investment in skill development programmes and the incentivisation of industries to adopt comprehensive apprenticeships lays a solid foundation for a future-ready workforce. Integrating on-the-job training (OJT) as a mandated component of degrees, in collaboration with industry partners, allows students to gain invaluable practical experience, even if the training is not necessarily on-site," said Ramesh Alluri Reddy, CEO at TeamLease Degree Apprenticeship.

The finance minister, in her budget speech, said that the Union Budget for 2024-25 has provided Rs 1.48 lakh crore for education, employment and skilling. She announced three schemes for ‘Employment Linked Incentive’.

Under the first scheme, all employees entering the workforce will get a one-month wage of up to Rs 15,000 through the direct benefit transfer route. Second, the government will provide Rs 3,000 a month to manufacturing companies to cover their EPFO contributions for two years for every extra hire.

Third, 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.

“As HR professionals, these schemes will also enable us to continue investing in our talent confidently, knowing that we have the support to grow our workforce and contribute to the broader economy. Moreover, with the rise of remote and hybrid working models, these incentives will offer a unique opportunity. We can continue to expand our talent pool beyond traditional geographical limitations much more deeply, providing flexible working conditions that cater to the evolving preferences of today’s workforce,” said Chetna Gogia, head of HR at Gokwik.

“The significant investment in one thousand industry training institutes, and the provision of Rs 1.48 lakh crore for education, employment and skilling will build a strong support system for educational delivery,” said Dr PR Sodani, president of IIHMR University.