Finance Minister Nirmala Sitharaman announced today that the government will grant a one-month salary as a Provident Fund contribution to all new employees entering the workforce. All employees entering the workforce will get a a direct benefit transfer (DBT) of up to Rs 15,000, she said. It will be provided in three installments and the eligibility limit is of Rs 1 lakh salary.

“The scheme targets individuals entering all sectors and will benefit 21 million young people,” Sitharaman said during the 2024-25 Union Budget presentation in Parliament.

The government will provide Rs 3,000 per month to companies to cover their EPFO contributions for each additional hire, for a period of two years. This initiative is expected to benefit around 3 million young people across various sectors, according to the finance minister.

Sitharaman added that the government will allocate Rs 2 lakh crore for job creation over the next five years. She also announced three employment-related schemes. She revealed plans to establish hostels for working women to boost female participation in the workforce.

The Model Skill Loan Scheme will be revised to offer loans up to Rs 7.5 lakh with a government-backed guarantee fund, benefiting 25,000 students annually. The government will support higher education loans up to Rs 10 lakh for domestic institutions, and 100,000 students will receive e-vouchers each year, she announced.

Discontent over unemployment was a major factor in Prime Minister Narendra Modi’s BJP failing to secure a majority in the Lok Sabha elections, necessitating its reliance on allies like TDP and JDU.