The government will launch three job-linked schemes to boost employment in manufacturing and other formal sectors of the economy.

Finance Minister Nirmala Sitharaman, while presenting the Union Budget for 2024-25 in the Lok Sabha on Tuesday, said that these schemes will be based on enrollment in Employees' Provident Fund Organization (EPFO).

"Our government will implement three schemes for employment-linked incentives," she said.

Scheme A for first-timers

Will provide a month’s wage to all employees entering the workforce in all formal sectors. Direct benefit transfer of one month’s salary in three installments to first-time employees as registered with the EPFO will be up to Rs 15,000. The eligibility limit will be Rs 1 lakh per month. The scheme is likely to benefit 210 lakh youths.

Scheme B for job creation in manufacturing

Scheme to incentivise additional employment in the manufacturing sector linked to the employment of first-time employees. An Incentive will be provided at specified scale directly to the employee as well as the employer with respect to EPFO contribution in the first four years of employment. The scheme is likely to benefit 30 lakh youths and their employers.

Scheme C for supporting employers

This scheme will cover additional employment 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 3,000 per month for two years towards the EPFO contribution for each additional employee. The scheme is expected to incentivise additional employment of 50 lakh persons.

About scheme B, Sitharaman said it will incentivise additional employment into the manufacturing sector. "An incentive will be provided at specified scale directly to the employee and employer with respect to the EPFO contribution in the first four years of employment. This scheme is expected to benefit 30 lakh youth... and their employers," the minister said, according to PTI.

She said scheme C will cover additional employment in all sectors. "All additional employment within a salary of Rs 1 lakh per month will be counted," she said, adding that the government will reimburse to employers up to Rs 3,000 per month for two years towards the EFPO contribution to each additional employee.

The scheme is expected to incentivise additional employment of 50 lakh people.

The minister also announced that working women hostels will be set up in the country to promote women's participation in the workforce.