During her budget presentation on July 23, Finance Minister Nirmala Sitharaman introduced three employment-linked skilling schemes as part of the Prime Minister’s package. These schemes, based on enrolment in the EPFO, aim to recognize first-time employees who will receive a direct benefit transfer (DBT) of one month’s wage, up to Rs 15,000, distributed in three installments. This initiative, capped at a salary of Rs 1 lakh per month, is expected to benefit 2.1 lakh youths entering the workforce in formal sectors.
Sitharaman also announced a new centrally-sponsored skilling program, created in collaboration with states and industry, to skill 20 lakh youths over five years. This program includes revising the model skilling loan scheme to offer loans up to Rs 7.5 lakh and providing incentives to 30 lakh youths entering the job market by covering their PF contributions for a month. These measures aim to accelerate rural economic growth and create employment opportunities.
Additionally, the budget includes an internship program under the PM’s package, offering one-year internships to 1 crore youths across 500 top companies over five years. Interns will receive a monthly allowance of Rs 5,000 and a one-time assistance of Rs 6,000, with companies bearing training costs and 10% of internship costs from their CSR funds. This initiative is designed to enhance youth employment prospects and skill development.
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