Objectives

Salient Features

• To facilitate employment, and skilling opportunities for youth.
• Promote job creation, enhance employability, and expand social security across sectors, specifically manufacturing.

• Nodal Ministry: Ministry of Labour & Employment
• Implementation: By the Ministry of Labour & Employment through Employees Provident Fund Organisation (EPFO). 
  • EPFO a statutory body under the Employees' Provident Funds & Miscellaneous Provisions Act of 1952.
• Target: 3.5 crore jobs (including first-time employees) over a period of two years.
• The Scheme has two key parts :
• Part A - Support to First-Time Employees: It targets first-time employees registered with Employees' Provident Fund Organisation (EPFO).
  • Incentive: One-month EPF wage up to Rs 15,000 in two instalments. 
    • First instalment will be payable after 6 months of service and the second instalment after 12 months of service and completion of a financial literacy programme by the employee.
  • Eligible Employees: Employees with salaries up to Rs 1 lakh per month. 
  • Encouraging Savings: A portion of incentive will be kept in a savings instrument of deposit account for a fixed period.
  • Payment Mechanism: DBT (Direct Benefit Transfer) mode using Aadhar Bridge Payment System (ABPS). 
  • Benefits for the employee: Formalisation of job through expansion of social security coverage, On job training making First-timers employable, Improved employability and Financial literacy skills.
• Part B – Incentives for Employers
  • Eligibility: Employers will receive incentives in respect of new employees with salaries up to Rs 1 lakh. 
  • Incentive: Up to Rs 3000 per month, for two years, for each additional employment, sustained for at least six months. 
    • For the manufacturing sector, incentives will be extended to the 3^rd and 4^th  years as well.
  • Incentive Mechanism: Directly into their PAN-linked Accounts.
  • Benefits for the employers: Offset of additional job creation, Enhancing workforce stability and productivity, and Incentivize coverage of social security.