In the Union Budget 2024-2025 presented on Tuesday, Finance Minister Nirmala Sitharaman announced several key employment-linked incentives aimed at supporting first-time employees, employers, and job creation in the manufacturing sector. Highlighting employment and skilling as one of the nine major priorities, the Finance Minister outlined three major schemes under the Prime Minister’s package.
Scheme A: Support for First-Time Employees
This scheme offers a unique incentive for individuals newly entering the formal workforce. First-time employees registered with the Employees’ Provident Fund Organisation (EPFO) will receive a one-month wage as a Direct Benefit Transfer (DBT). The benefit, capped at Rs. 15,000 per month, will be disbursed in three installments. The scheme targets to support up to 10 lakh young individuals, providing a boost to those embarking on their professional journeys.
Scheme B: Job Creation in Manufacturing
To stimulate job creation in the manufacturing sector, Scheme B incentivizes the hiring of first-time employees. Both employees and employers will receive benefits based on their contributions to the EPFO during the first four years of employment. This initiative aims to assist up to 30 lakh first-time employees and their employers, fostering a more robust manufacturing workforce.
Scheme C: Employer Support Across Sectors
Focusing on additional employment across various sectors, Scheme C provides financial support to employers for hiring new employees. The government will reimburse employers up to Rs. 3,000 per month for two years for every additional employee earning up to Rs. 1 lakh per month. This measure is expected to incentivize the employment of 50 lakh individuals, enhancing overall job creation.
Additional Announcements
Beyond these employment schemes, the Finance Minister emphasized the importance of increasing women’s participation in the workforce and announced a centrally sponsored program to skill 20 lakh youth.
Budget 2024-25 increased standard deduction of salaried employees from ₹ 50,000/- to ₹ 75,000/- for those opting for new tax regime. Similarly, deduction on family pension for pensioners enhanced from ₹ 15,000/- to ₹ 25,000/-. Assessments now, can be reopened beyond three years up to 5 years from end of year of assessment, only if, the escaped income is more than ₹ 50 Lakh. The new tax regime rate structure is also revised to give a salaried employee benefits up to ₹ 17,500/- in income tax.
| Income Slabs | Tax Rate |
| 0 – 3 Lakh rupees | NIL |
| 3 – 7 Lakh rupees | 5 per cent |
| 7 – 10 Lakh rupees | 10 per cent |
| 10 – 12 Lakh rupees | 15 per cent |
| 12 – 15 Lakh rupees | 20 per cent |
| Above 15 Lakh rupees | 30 per cent |
