New Delhi: The Ministry of Labour and Employment is finalising three employment-linked incentive schemes announced in the budget before forwarding them to the expenditure finance committee for approval later this month. The committee’s nod is necessary for rolling out the schemes.
The ministry has also started a major capacity augmentation and software upgradation at the Employees’ Provident Fund Organisation (EPFO)–the nodal body for implementing the schemes, a senior government official told ET, requesting anonymity.
The government plans to incentivise creation of 29 million formal jobs under EPFO under the three schemes in the next two years.
According to the official, the government will utilise existing employers’ data with EPFO as major companies across sectors, with employment generation potential, are under the EPFO’s ambit.
“Implementation of the scheme is the key thing. The ministry is working out the timelines and carrying out extensive updation of the software at the EPFO to avoid any glitches as we roll out the schemes,” the official said.
The plan is to officially launch the schemes in September, coinciding with Prime Minister Narendra Modi’s birthday. However, this would require a go-ahead from the expenditure finance committee, followed by the cabinet.
Annual formal jobs created under the EPFO stood at 15.4 million in FY24, 11.4% higher than 13.85 million in the previous year.
Under Scheme A, the government will reimburse a month’s wage, up to Rs 15,000 in three instalments, as a subsidy to those entering the workforce for the first time.
