Budget 2024: Centre to provide 1-month wage to all new entrants in formal sector

Budget 2024: The government will directly transfer the amount to the employees as their provident fund contribution.

Updated on: Jul 23, 2024, 12:52:18 IST

By HT News Desk

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Budget 2024: Union finance minister Nirmala Sitharaman announced on Tuesday that the government will provide a one-month wage to all persons newly entering the workplace in all formal sectors. Follow Budget LIVE updates here.

Union finance minister Nirmala Sitharaman along with finance secretary T V Somanathan outside the Finance Ministry in North Block before leaving for the Parliament where she will table the Union Budget 2024-25 in New Delhi, Tuesday, July 23, 2024. (PTI)

While presenting the Budget, Sitharaman said that the government will directly transfer the amount to the employees as their provident fund contribution.

"...One month's wage to all persons newly entering the workplace in all formal sectors. Direct Benefit Transfer of one month's salary in 3 instalments to first-time employees as registered in the EPFO will be up to ₹15,000. The eligibility limit will be a salary of ₹1 lakh per month. The scheme will benefit 210 lakh youth," the finance minister said while presenting the Budget.

The announcements were part of the prime minister's package for employment and skilling.

In addition to the direct benefit transfer, the government also announced that incentives will be provided directly to both employees and employers based on their EPFO contribution in the first four years of employment. It also announced that employers will be reimbursed up to ₹3,000 per month for two years towards their EPFO contribution for each additional employee.

Sitharaman also announced that working women hostels will be set up in the country to promote women's participation in the workforce. She added that the government will provide funds to the private sector, domain experts and others for developing climate-resilient seeds.

Also Read | Budget speech key highlights: Govt to provide financial support for educational loans up to ₹10 lakh

The finance minister further highlighted that the Budget for 2024-'25 will provide ₹1.48 lakh crore for education, employment and skilling in the country.

She added that people have given unique opportunity to the Modi government to take India on the path of strong development, and all-round prosperity.

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