Watch: Budget 2024 | What is in store for labour?

In her seventh budget speech, Finance Minister Nirmala Sitharaman announced three new employee-linked incentive schemes in the Union Budget for 2024-25. The three schemes, which are part of the Prime Minister’s package, will align with enrolment in the Employee Provident Fund Organisation and focus on the recognition of first-time employees, as well as support to both employers and employees.

The schemes will facilitate employment, skilling and other opportunities for 4.1 crore youth over a five-year period with a central outlay of ₹ 2 lakh crore. The Centre will provide ‘Employment Linked Incentives’ to employers based on enrolment in the Employees Provident Fund Organisation. One of the major proposal among this is to provide internship opportunities in 500 top companies to one crore youth for 12 months.

Students will get an internship allowance of ₹ 5,000 per month along with a one-time assistance of ₹ 6,000. Companies will have to bear the training cost and 10 per cent of the internship cost from their CSR funds. Many have interpreted this as the next Agniveer scheme given the casual nature of this scheme. Trade unions also seem to be not happy with the budget as their long pending demand of restoration of Old Pension Scheme is ignored this time too.