Budget 2024: Expert explains the contours of Modi government's Employment-linked Incentive Scheme

As part of Budget 2024, three employment-linked incentive schemes were announced to support employees and employers via EPFO enrolment. Scheme A targets first-time employees with a salary under INR 1 lakh per month, offering a one-month wage subsidy up to INR 15,000 via DBT, benefiting approximately 1 crore people annually. Scheme B encourages hiring in the manufacturing sector, providing incentives over four years to eligible employers and employees, benefiting 30 lakh first-time employees. Scheme C supports employers meeting specified hiring thresholds with subsidies and incentives to boost job creation and retention.