The Centre will also facilitate greater participation of women in the labour market by setting up working women hostels in partnership with industry, and setting up crèches. In addition, the partnership will seek to organise women-specific skilling programmes, and promote market access for women SHG enterprises.
An overview of all offers for young people looking for a job and employer:
1. SCHEME A: FOR FIRST TIME
This scheme provides one month’s wage as subsidy (up to Rs 15,000) and is applicable to all sectors. Those who are newly entrants (EPFO) with a wage/salary of less than Rs 1 lakh per month are eligible. The scheme is expected to benefit 2.1 crore youth.
- The subsidy will be paid to the employee in three installments.
- Employees are required to complete an online Financial Literacy course before they can claim the second installment.
- The subsidy will be repaid by the employer if the starter’s employment ends within 12 months of entering into employment.
- This is expected to cover about 1 crore persons per year.
- The scheme applies for a period of 2 years.
2. SCHEDULE B: JOB CREATION IN INDUSTRY
It will be applicable for substantial recruitment of new employees in the manufacturing sector. All employers who are legal entities and those non-legal entities with a track record of three years of EPFO contribution are eligible. The scheme is expected to benefit 30 lakh youth who go to work and their employers.
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The employer must employ at least the following number of employees who were not previously registered with the EPFO:
- 50 or 25% of the baseline (number of EPFO employees of the previous year) (whichever is lower).
- The premium is paid partly to the employee and partly to the employer over a period of four years, as follows:
- The employer must maintain a threshold level for additional employment throughout the employment relationship. If this is not done, the subsidy will stop.
- The employee must be directly employed by the entity paying the salary/wages (i.e. a contract employee).
- Employees with a wage/salary up to Rs 1 lakh per month are eligible, provided they contribute to EPFO.
- For employees with a wage/salary of more than Rs 25,000/month, the premium will be calculated at Rs 25,000/month.
- The subsidy will be repaid by the employer if the employment relationship with the starter ends within 12 months after entering into employment.
- This subsidy is in addition to Part A benefits.
- The scheme applies for a period of 2 years.
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3. SCHEDULE C: EMPLOYER SUPPORT
It will be applicable to an employer who increases employment above the baseline (number of EPFO employees last year) by at least two employees (for those with less than 50 employees) or 5 employees (for those with 50 or more employees) and maintains the higher level, and for employees whose salary does not exceed Rs 1,00,000/month. The scheme is expected to stimulate additional employment of 50 lakh people.
New employees covered under this Part need not be new entrants to EPFO.
For two years, the government will reimburse the employer’s contribution of EPFO (upto) Rs 3,000/month to the employer for the additional employees hired in the previous year.
If the employer creates more than 1,000 jobs:
- The refund will be made quarterly for the previous quarter.
- The subsidy continues in the 3rd and 4th years at the same scale as the employer’s benefit in Part B.
- Not applicable to employees covered under Part B.
- This subsidy is in addition to Part A benefits.
- The scheme applies for a period of 2 years.
ALSO READ | FM’s Push For Jobs: 20 Lakh to Get Skilled in 5 Years, A Month’s Salary to Help 2.1 Crore New Entrants
4. Skills programme and modernization of industrial training institutes
A total of 1,000 Industrial Training Institutes (ITIs) will be upgraded over five years into hub-and-spoke arrangements. There will also be a new Centrally Sponsored Scheme in partnership with states and industry. The focus will be on skill outcomes and quality, and the course content and design will be tailored to the needs of industry. As part of the scheme, 20 lakh youth will be trained over a period of 5 years.
The total budget is 60,000 crore rupees over five years:
- Government of India: Rs 30,000 crore
- State Governments: Rs 20,000 crore
- Industry: Rs 10,000 crore (including CSR funding)
200 hubs and 800 spoke ITIs are being set up, all with the cooperation of the industry. It includes:
- Redesign and revision of existing courses
- New courses
- 1- to 2-year courses in all 1000 ITIs
- Short specialist courses in Hub ITI’s
Measures are being taken to increase the capacity of five national institutes for the training of trainers.
5. Internship at top companies
The government plans to develop skills one crore youth in India’s top companies in five years under the 12-month Prime Minister’s Internship with monthly stipend of Rs 5,000 along with a one-time assistance of Rs 6,000. It will be applicable to those who are not employed and not in full-time education. Youth between the ages of 21 and 24 are eligible to apply.
Cost sharing (per year)
- Government: Rs 54,000 monthly allowance (plus Rs 6,000 subsidy for incidental expenses)
- Company: Rs 6,000 from CSR funds for monthly allowance
- Training costs are borne by the company from CSR funds
- Administrative costs borne by the respective parties (for the company, reasonable administrative costs may be included as CSR expenses)
Participation of companies is voluntary. Applications via an online portal. Companies select from a shortlist; shortlisting based on objective criteria with emphasis on those with lower employability.
Ineligible Candidates (Indicative List)
- Candidate has IIT, IIM, IISER, CA, CMA etc. as qualification
- Each family member is subject to income tax
- Every family member is a civil servant, etc.
The company is expected to provide the individual with actual work experience in a skill that the company is directly involved in. At least half of the time must be in actual work experience/work environment, not in a classroom. If the company cannot do this directly, it must work with:
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- Companies in its forward and backward supply chain (e.g. suppliers or customers) or other companies/institutions in its group or otherwise.
- Coordinated with state government initiatives where possible.
- Phase 1 of the programme lasts 2 years, followed by Phase 2 of 3 years.
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3. SCHEDULE C: EMPLOYER SUPPORT
It will be applicable to an employer who increases employment above the baseline (number of EPFO employees last year) by at least two employees (for those with less than 50 employees) or 5 employees (for those with 50 or more employees) and maintains the higher level, and for employees whose salary does not exceed Rs 1,00,000/month. The scheme is expected to stimulate additional employment of 50 lakh people.
New employees covered under this Part need not be new entrants to EPFO.
For two years, the government will reimburse the employer’s contribution of EPFO (upto) Rs 3,000/month to the employer for the additional employees hired in the previous year.
If the employer creates more than 1,000 jobs:
- The refund will be made quarterly for the previous quarter.
- The subsidy continues in the 3rd and 4th years at the same scale as the employer’s benefit in Part B.
- Not applicable to employees covered under Part B.
- This subsidy is in addition to Part A benefits.
- The scheme applies for a period of 2 years.
ALSO READ | FM’s Push For Jobs: 20 Lakh to Get Skilled in 5 Years, A Month’s Salary to Help 2.1 Crore New Entrants
4. Skills programme and modernization of industrial training institutes
A total of 1,000 Industrial Training Institutes (ITIs) will be upgraded over five years into hub-and-spoke arrangements. There will also be a new Centrally Sponsored Scheme in partnership with states and industry. The focus will be on skill outcomes and quality, and the course content and design will be tailored to the needs of industry. As part of the scheme, 20 lakh youth will be trained over a period of 5 years.
The total budget is 60,000 crore rupees over five years:
- Government of India: Rs 30,000 crore
- State Governments: Rs 20,000 crore
- Industry: Rs 10,000 crore (including CSR funding)
200 hubs and 800 spoke ITIs are being set up, all with the cooperation of the industry. It includes:
- Redesign and revision of existing courses
- New courses
- 1- to 2-year courses in all 1000 ITIs
- Short specialist courses in Hub ITI’s
Measures are being taken to increase the capacity of five national institutes for the training of trainers.
5. Internship at top companies
The government plans to develop skills one crore youth in India’s top companies in five years under the 12-month Prime Minister’s Internship with monthly stipend of Rs 5,000 along with a one-time assistance of Rs 6,000. It will be applicable to those who are not employed and not in full-time education. Youth between the ages of 21 and 24 are eligible to apply.
Cost sharing (per year)
- Government: Rs 54,000 monthly allowance (plus Rs 6,000 subsidy for incidental expenses)
- Company: Rs 6,000 from CSR funds for monthly allowance
- Training costs are borne by the company from CSR funds
- Administrative costs borne by the respective parties (for the company, reasonable administrative costs may be included as CSR expenses)
Participation of companies is voluntary. Applications via an online portal. Companies select from a shortlist; shortlisting based on objective criteria with emphasis on those with lower employability.
Ineligible Candidates (Indicative List)
- Candidate has IIT, IIM, IISER, CA, CMA etc. as qualification
- Each family member is subject to income tax
- Every family member is a civil servant, etc.
The company is expected to provide the individual with actual work experience in a skill that the company is directly involved in. At least half of the time must be in actual work experience/work environment, not in a classroom. If the company cannot do this directly, it must work with:
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first print: Jul 23, 2024, 1:47 PM IST
