Big Boost for New Job Seekers: Govt to Give ₹15,000 to First-Time Employees
New Delhi (The Uttam Hindu): The Ministry of Labor and Employment said on Friday that the employees registering with the EPFO for the first time will be given an amount of Rs 15,000 by the government from August 1 under the Pradhan Mantri Vikas Bharat Rojgar Yojana (PM-VBRY).
PM-VBRY was earlier known as Employment-Linked Incentive (ELI) Scheme. The Union Cabinet approved it with an outlay of Rs 99,446 crore. The ministry said, "Targeting employees registered with EPFO for the first time, one month's EPF salary up to Rs 15,000 will be paid in two installments under this scheme." Under this scheme, the first installment will be payable after six months of starting the job and the second installment will be payable after 12 months of service and completion of financial literacy program by the employee. People with salary up to Rs 1 lakh have been targeted under this scheme. Its objective is also to increase the habit of saving among the people.
"A part of the incentive amount will be parked in a saving instrument or deposit account for a fixed period and can be withdrawn by the employee later," the ministry said. The scheme also encourages employers to create new jobs and aims to provide benefits for new employment creation across various sectors, with a special focus on the manufacturing sector. For employers, the scheme will cover additional employment creation across all sectors, with a special focus on the manufacturing sector. "Employers will get incentives for employees with a salary of up to Rs 1 lakh. The government will provide incentives of up to Rs 3,000 per month to employers for two years for each additional employee with continuous employment for at least six months," the ministry said. Incentives for the manufacturing sector will be extended to the third and fourth years.
To avail the scheme, EPFO-registered establishments have to employ at least two additional employees (for employers with less than 50 employees) or five additional employees (for employers with 50 or more employees) on a continuous basis for at least six months. Payments to first-time job seekers will be made through DBT (Direct Benefit Transfer) mode using Aadhaar Bridge Payment System (ABPS), while payments to employers will be made directly into their PAN-linked accounts, the ministry said. The PM-VBRY scheme aims to spur creation of over 3.5 crore jobs in the country over a period of two years, the ministry said.
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