Budget 2024: Government to offer internship with allowance of Rs 5,000/month

Budget 2024: In a move to boost employment and enhance workforce participation, Finance Minister Nirmala Sitharaman announced a series of new schemes and initiatives as part of the Union Budget for 2024-25. The government’s focus includes creating job opportunities for youth, supporting working women, and promoting sustainable agriculture.

One of the major highlights is the introduction of a comprehensive scheme for internship opportunities. The government will offer internships in "500 top companies" to one crore youth over the next five years. Each intern will receive an allowance of Rs 5,000 per month, along with a one-time assistance of Rs 6,000. Companies are expected to cover the training costs and 10 per cent of the internship costs from their corporate social responsibility (CSR) funds.

To further support young job seekers, the government will provide incentives to 30 lakh youth entering the job market by covering one month's Provident Fund (PF) contribution. This initiative aims to alleviate the financial burden on both employers and new employees, fostering more employment opportunities. Additionally, the government will give one month's salary to all new employees entering the workforce, benefiting 210 lakh youths across various sectors.

Recognising the importance of women's participation in the workforce, the government plans to set up working women hostels across the country. These hostels will offer safe and affordable accommodation for working women, thereby supporting their professional endeavours and promoting gender equality in employment.

Among other employment measures, the Finance Minister announced that the government will provide Rs 3,000 per month to companies to cover their EPFO contributions for a period of two years for every additional hiring. This measure is expected to incentivise companies to expand their workforce.

The Finance Minister also reaffirmed the government's commitment to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), an existing scheme that guarantees 100 days of wage employment annually to at least one adult member of every household seeking manual work. This scheme remains a cornerstone of rural employment and social security.
 
(Source: Republicbiz)