The central government on Tuesday announced three schemes offering employment-related incentives in a bid to boost employment generation with an outlay of ₹1,07,000 crore. Along with internship programmes and upgradation of ITIs, the total outlay is ₹2 lakh crore.

The first scheme will focus on providing one month salary to new entrants to the workforce. “The direct benefit transfer of one-month salary in 3 installments to first time employers, 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 is expected to benefit 210 lakh youth,” said union finance minister Nirmala Sitharaman.

The second scheme will incentivise additional employment in the manufacturing sector, linked to the employment of first time employees. “An incentive will be provided at specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first 4 years of employment,” the finance minister said adding that the scheme will benefit 30 lakh youth entering employment and their employers.

The third scheme is focused towards offering support to employers in all sectors. “All additional employment within a salary of Rs 1 lakh per month will be counted. The government will reimburse to employers up to Rs 3000 per month for 2 years towards their EPFO contribution for each additional employee,” the minister said adding that scheme is expected to incentivise additional employment of 50 lakh persons.