The Indian government is set to introduce three employment-linked schemes aimed at creating 29 million new formal jobs. These initiatives, outlined in the 2024-25 budget, focus on first-time employees and offer incentives to employers through the Employee Provident Fund Organisation (EPFO).
To ensure a smooth rollout of these ambitious job creation schemes, the government is set to hold high-level meetings with all states and union territories. These discussions will focus on aligning state regulations with central labour codes, boosting employment generation, integrating the e-Shram portal, and expanding social security benefits to building and construction workers.
The upcoming meetings will address discrepancies between state draft rules and central regulations concerning the four labour codes to ensure uniformity across the country.
In its first budget since returning to power with a reduced majority, the Bharatiya Janata Party-led government has prioritised job creation. The budget introduced three initiatives with financial incentives aimed at expanding formal-sector employment.
The first scheme provides a subsidy equivalent to one month’s wage, up to ₹15,000, in three instalments to support around 21 million youths registered with the EPFO who are entering the formal workforce.
The second scheme offers benefits based on EPFO contributions for new employees during their first four years of employment, targeting job creation for approximately 3 million individuals in the manufacturing sector.
The third initiative reimburses employers up to ₹3,000 per month for each additional employee hired, provided their salary is capped at ₹1 lakh per month. This initiative aims to facilitate the hiring of about 1.5 million new employees across various sectors.
The 2024-25 Budget also announced labour welfare measures including the integration of the e-Shram portal to streamline job matching and skills development. It also outlined upgrades to the Shram Suvidha portal to simplify compliance and enhancements to the Samadhan portal to improve grievance redressal.