Budget 2024: All You Need To Know About New Salary Scheme For First-Time Employees
This new scheme applies to all first-time employees who are joining the workforce across all formal sectors.
Three schemes were introduced during the Union Budget 2024-25 through the Employees' Provident Fund Organisation to boost employment in the country. One among these three schemes will provide financial support for first-timer employees across various sectors.
The scheme is set to provide individuals who are joining the workforce for the first time with one month's salary as a subsidy from the government, with some conditions.
The so-called 'Scheme A' aims to benefit up to 2.1 crore youths. Here is a look at who is eligible:
Eligibility Criteria
This new scheme applies to all first-time employees who are joining the workforce across all formal sectors. Prospective employees will only be eligible to avail the scheme if their salary is less than Rs 1 lakh per year.
Only employees who are registered under the EPFO are eligible. They need to remain employed for a full year to retain the benefit.
How This Works?
The subsidy will directly be paid by the government through direct benefit transfer of up to Rs 15,000 in three instalments.
The eligibility after the first instalment is determined by completing a mandatory financial literacy course. The employees will need to complete this course before claiming the second instalment.
What Happens Upon Termination?
If a fresher does not complete a full year in the organisation or if employment ends within a year, the subsidy is to be refunded.
This refund needs to be completed by the employers in case of termination within a year of recruitment.
Further Details
The fund allocation for this scheme is Rs 23,000 crore. This scheme is set to benefit up to 1 crore individuals per annum. "First timers have a learning curve before they become fully productive," the annexure of the budget stated. "Subsidy is to assist employees and employers in hiring of first timers."
