Support through Employees’ Provident Fund for fresh employees: Union Budget

epfo

The Finance Minister Nirmala Sitharaman proposed to offer a Direct Benefit Transfer of upto Rs 15,000 through the Employees’ Provident Fund Organisation (EPFO) to people newly joining the workforce.

To be eligible for the scheme, one needs to have a salary of Rs 1 lakh per month. The Government anticipates 210 lakh youth to benefit from the scheme.

Additionally, first time employees, newly entering the workforce in formal sectors will be given a month’s salary to further boost employment. This move is likely to benefit 15 lakh individuals.

Follow: Union Budget 2024 Live Updates on Moneycontrol

More benefits to the employers employing fresh workforce would be offered for the first four years of employment.

To enhance participation of women in the workforce, working women hostel in collaboration with the industry and creche will be established.

To ensure trained eligible workforce availability, an education loan offering financial support of upto Rs 10 lakh will be offered to help youth.

E-vouchers for this purpose will be given to youth members with an annual interest subvention of 3 percent on the loan amount.

Within the first year, if the employee has been removed, then the subsidy benefit will be taken away from the employer.

Additionally, the first-time employee availing the direct benefit transfer may be also asked to take an online financial literacy course.

Also See: E-vouchers announced to benefit students in Union Budget 2024