Govt’s big job plan: Labour ministry to announce new employment schemes | News
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In the Union Budget for FY25 tabled in July, three ELI schemes were introduced. | Representational
The labour ministry is expediting discussions with various stakeholders about the employment-linked incentive (ELI) schemes, according to a report from The Financial Express. The goal is to establish guidelines and announce the three schemes by the end of November. Sources indicated that while the initial target was to implement the ELIs by the close of 2024, an earlier rollout is now anticipated.
To date, the ministry has conducted 15 meetings with a range of participants, including industry representatives, employer and employee organisations, government ministries, officials from states and Union Territories, the Employees’ Provident Fund Organisation (EPFO), and various academic and research institutions.
Recently, the ministry also engaged with key multilateral organisations such as the International Labour Organisation, World Bank, Asian Development Bank, International Monetary Fund, and United Nations Development Programme. These meetings focused on gathering insights to aid in developing the schemes’ guidelines, emphasising that simplicity in implementation is crucial. The design should not be overly complicated to ensure industry participation.
Additionally, these multilateral organisations will share data on comparable initiatives from other countries, which will serve as valuable references in shaping the guidelines.
Overview of Employment-Linked Incentive schemes
In the Union Budget for FY25 tabled in July, three ELI schemes were introduced. Scheme A targets first-time employees in the formal sector registered with the EPFO, providing a one-month wage (up to Rs 15,000) in three instalments through direct benefit transfer.
Scheme B is designed to encourage job creation in the manufacturing sector, offering incentives to both employees and employers for hiring first-time workers, based on EPFO contributions during the initial four years of employment.
Scheme C supports employers by reimbursing Rs 3,000 per month for two years towards their EPFO contributions for each additional employee earning up to Rs 1 lakh per month.
First Published: Oct 01 2024 | 10:40 AM IST
