Hyderabad:The employment linked incentive (ELI) announced by the Union Budget on Tuesday will boost jobs and manufacturing sectors in the state, which boasts of a significant number of small and medium enterprises (SMEs).
The Centre has proposed to implement three schemes under the ELI programme: Enrolment in EPFO, recognition of first-time employees and government support to employees and employers.
The first-timers scheme will provide one-month wage to all employees entering the workforce in formal sectors. The direct benefit transfer of one-month salary, up to `15,000, will be in three installments to employees registered in EPFO. The eligibility limit will be a salary of `1 lakh per month. The scheme is expected to benefit 2.1 crore youths.
"There will be a good scope for first time employees to get recruitment as the incentives are lucrative for both the employees and the employers. This will also benefit the manufacturing sector," said Koteswara Rao, convener, All India Forum for Small and Medium Industries
The first-timer scheme is expected to benefit 30 lakh youths entering the industry and their employers.
Support to employers will cover additional employment in all sectors. The government will reimburse employers up to `3,000 per month for two years towards their EPFO contribution for each additional employee. This is expected to incentivize additional employment of 50 lakh persons.
