Budget 2024: Major boost for women and new workers with hostels, creches and wage subsidies

In her inaugural Budget for Prime Minister Narendra Modi’s third term, Finance Minister Nirmala Sitharaman has rolled out an ambitious plan under the "Viksit Bharat" initiative, targeting a major overhaul in employment and skilling sectors. The budget introduces several key measures to boost workforce participation and job creation.

Incentives for women and new workers

One of the standout features of the budget is the focus on increasing women's participation in the workforce. The government plans to set up working women hostels in collaboration with industry partners and establish creches to support working mothers. Additionally, new entrants into the formal sector will receive a wage subsidy of up to Rs 15,000, distributed in three instalments, which is expected to benefit approximately 21 million youth.

The budget also includes targeted schemes to incentivise both employers and employees. Scheme A offers benefits for first-time employees, providing incentives for EPFO contributions for the initial four years.

Jobs in manufacturing sector

This initiative aims to support 3 million new workers. Scheme B, focused on job creation in the manufacturing sector, promises to generate 5 million jobs by reimbursing employers for EPFO contributions up to Rs 3,000 per month for two years.

Further support to employers is outlined in Scheme C, which includes a reimbursement for EPFO contributions for new hires, potentially creating 5 million additional jobs. The budget also addresses educational support with loans up to Rs 7.5 lakh, guaranteed by a government-promoted fund, to assist 25,000 students annually.

Education and skilling boost

Moreover, financial support for loans up to Rs 10 lakh for higher education and direct e-vouchers for 1 lakh students each year are part of this comprehensive package.

The skilling programme is another critical component, with plans to skill 20 lakh youth over the next five years. This involves upgrading 1,000 Industrial Training Institutes and aligning course content with industry needs to ensure that the training provided is relevant and effective.

(Source: Republicbiz)