In a clear recognition of the challenge of unemployment in a country with the world’s largest young population, govt unveiled for four crore youths a Rs 2 lakh crore mega package of five schemes spread over a 5-year period to boost jobs, skilling and other opportunities. Three new schemes under the PM’s package will incentivise first-time employees, providing one-month wage to new entrants in the workforce in all formal sectors, and also support employers.
This comes against the backdrop of joblessness among youths running into double digits and emerging as a major issue in Lok Sabha polls.

According to the Economic Survey, India needs to generate 78.5 lakh jobs in the non-farm sector on average per year till 2030. Govt has said the private sector needs to create job opportunities as it has robust balance sheets and profitability is at a 15-year high.

There will be direct benefit transfer of one month’s salary in three instalments to first-time employees, as registered in EPFO, of up to Rs 15,000. The eligibility limit is a salary of Rs 1 lakh a month and is set to benefit 2.1 crore people.

An incentive will be provided at specified scale directly to employee and employer, linked to EPFO contribution in the first four years of employment. The scheme is set to benefit 30 lakh first-time employees and their employers. Another scheme will reimburse employers up to Rs 3,000 a month for two years towards their EPFO contribution for each new hire within a salary of Rs 1 lakh a month. This scheme is expected to incentivise employment of 50 lakh people. There’s also a centrally sponsored scheme for skilling, in collaboration with states and industry, under which 20 lakh youth will be skilled over 5 years.
For women, specific skilling programmes and promotion of market access for self-help group enterprises would also be encouraged.


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