Biggest EPFO Update ! ₹15,000 Joining Bonus | Employment Linked Incentive Scheme | Budget 2024

Summary

The video script discusses a significant government initiative aimed at boosting employment and providing benefits to both new and experienced employees. It outlines various employment schemes including the EPFO's Scheme A and B, which offer incentives to employers for hiring freshers and partially cover salary costs. The schemes aim to provide liquidity support, with conditions attached to ensure job stability. The speaker, Rishabh Jain from the Labor Law Advisor channel, also shares his insights on the schemes' potential impact and eligibility criteria, encouraging viewers to subscribe and like for more informative content.

Takeaways

• 😀 The government has introduced a significant benefit scheme in the PF aimed at benefiting millions of employees and employers.
• 💼 The scheme is expected to provide a total benefit of INR 107,000 crores, transferring funds to both new and experienced employees.
• 📈 The government is offering a one-month salary bonus to employees as part of the scheme, with an additional 24% incentive on their salary.
• 🔑 For experienced employees, the government plans to provide benefits in the PF, with the eligibility criteria and personal opinions on the scheme to be discussed in detail.
• 🎓 The scheme covers new entrants to the workforce across all sectors, with an employment-linked incentive scheme to encourage companies to hire freshers.
• 💰 The primary benefit of Scheme A is a one-month salary of INR 15,000 as an incentive to employers for hiring new employees.
• 📝 There are eligibility criteria for the scheme, including a salary limit of INR 15,000 for PF coverage, and additional conditions for financial literacy courses.
• 🔄 The subsidy provided under the scheme may need to be refunded by the employer if the employment ends before 12 months.
• 🚫 The scheme does not apply to certain sectors like IT and trading, focusing instead on manufacturing units.
• 📉 Employers face risks under Scheme A, including the potential need to refund subsidies if an employee leaves before a year.
• 📚 The video promises a detailed discussion on the benefits, eligibility, and personal opinions regarding the scheme in the context of personal finance.

Q & A

What is the primary benefit of the government's PF scheme mentioned in the script?

The primary benefit is a one-month salary incentive of INR 1500 for employers who hire freshers, aimed at encouraging them to provide learning opportunities and incentivize employment.

How much additional incentive will be provided to employers under the PF scheme for employees' salary up to 24%?

An additional incentive of up to 24% of the salary will be provided, with the maximum benefit capped at INR 6000 per month for each eligible employee.

What is the estimated total benefit amount for the PF scheme discussed in the script?

The total estimated benefit amount is INR 107,000 crore, which is expected to benefit both freshers and experienced employees.

What are the eligibility criteria for the first scheme (Scheme A) in terms of the salary of the employees?

The eligibility criteria include that the employees must be newly entering the workforce in all formal sectors, and their basic salary or PF wage should be up to INR 1.5 lakhs.

What is the refund condition if the employment ends before 12 months under the PF scheme?

If the employment ends before 12 months, the employer is required to refund the received subsidy in full.

What are the conditions for the second scheme (Scheme B) regarding the number of employees an employer must hire to be eligible?

For Scheme B, employers must hire at least 50 additional workers or 25% more than their base line, which is determined by the average number of workers in the previous year.

What is the benefit period for the PF scheme mentioned in the script?

The benefit period for the PF scheme is from 3 to 6 years, depending on the specific scheme and conditions met.

What is the purpose of the 'Presidency to Employment and Skilling' and 'Initiative to Facilitate Employment Skilling for 4.1 crore youth' mentioned in the script?

The purpose is to provide a one-month wage to all persons newly entering the workforce, based on their enrollment in the EPFO, and to encourage skill development and employment in various sectors.

What are the potential issues that employers might face with the implementation of the PF scheme?

Employers might face increased costs if a worker leaves before the completion of 12 months, as they are required to refund the full subsidy. Additionally, they may face difficulties in maintaining compliance with the scheme's conditions.

What is the script's stance on the potential impact of the PF scheme on the liquidity of employers?

The script suggests that while the scheme may provide additional liquidity to employers, it also places significant financial risk on them, especially if employees leave before the end of the benefit period.

What is the script's opinion on the effectiveness of previous government schemes like PMRP and ABRY?

The script acknowledges that previous schemes were quite successful, with benefits transferred to around 1 crore workers and a total benefit of INR 9200 crore under the EPFO.