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Below the Union Budget 2024 Input on Summary of Proposed Employment Linked Incentive Scheme by Preeti Sharma, Partner, Global Employer Services, Tax & Regulatory Services, BDO India

The Government has proposed to implement three schemes for ‘Employment Linked Incentive’ to encourage and reward new employment opportunities. The eligibility to be covered under the proposed schemes shall be based on the enrolment of the employees in the Employee Provident Fund Organization (EPFO),
Scheme A: Reward to First-Time Employees. This scheme will provide a one-month wage to individuals taking up employment in any sector for the first time. The Government will transfer one month's salary up to INR 15,000 in 3 installments to the bank account of the eligible employees drawing salaries up to Rs 1 lakh per month.
Scheme B: Reward for Job Creation in Manufacturing. This scheme will incentivize the employers in the Manufacturing sector to hire Individuals who are first-time taking up employment. The benefit in the form of subsidy at specified scale shall be provided both to the employer as well as employees over a four-year period subject to satisfaction of conditions provided in the scheme.
Scheme C: Support to employers in all sectors. This employer-focussed scheme will cover additional employment up to a salary level of INR 1 lakh per month in all sectors. The Government will reimburse employers up to INR 3,000 per month for two years towards their contribution to the provident fund for each additional employee subject to satisfaction of prescribed conditions.

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