The scheme, under the Ministry of Labour and Employment, aims to support the creation of over 3.5 crore jobs in two years.
Key Features of the Scheme
The Scheme has two key parts –
- Part A - Support to First-Time Employees: It targets first-time employees registered with Employees' Provident Fund Organisation (EPFO).
- Incentive: One-month EPF wage up to Rs 15,000 in two instalments.
- First instalment will be payable after 6 months of service and the second instalment after 12 months of service and completion of a financial literacy programme by the employee.
- Eligible Employees: Employees with salaries up to Rs 1 lakh per month.
- Encouraging Savings: A portion of incentive will be kept in a savings instrument of deposit account for a fixed period.
- Payment Mechanism: DBT (Direct Benefit Transfer) mode using Aadhar Bridge Payment System (ABPS).
- Incentive: One-month EPF wage up to Rs 15,000 in two instalments.
- Part B – Incentives for Employers
- Eligibility: Employers will receive incentives in respect of new employees with salaries up to Rs 1 lakh.
- Incentive: Up to Rs 3000 per month, for two years, for each additional employment, sustained for at least six months.
- For the manufacturing sector, incentives will be extended to the 3rd and 4th years as well.
- Incentive Mechanism: Directly into their PAN-linked Accounts.
