The Fine Print In Government's Jobs Scheme: Nirmala Sitharaman Explains

The government's flagship apprenticeship programme, which has become contentious after Congress claims of plagiarism, has some crucial fine print that Union finance minister Nirmala Sitharaman made clear at a post-budget interview today. Two are of particular interest -- to the employees and their employers.

While the government is willing to provide the first-timers a month's salary of Rs 15,000 through Direct Benefit Transfer, this is somewhat conditional, the finance minister said.

The transfer is expected to come in three tranches of Rs 5,000 each. But "First timer applicants must undertake online financial literacy course before getting second installment of subsidy," the minister told reporters. She, however, did not elaborate what the financial literacy course would entail.

The second key condition is for the employers. "An employer will have to refund the subsidy if a first-time employee is removed within 12 months," she said. The reference is to additional employment in all sectors under the third employment-related scheme.

"All additional employment within a salary of Rs 1 lakh per month will be counted," the minister had said in her budget speech, adding that the government will reimburse to employers up to Rs 3,000 per month for two years towards the EFPO contribution to each additional employee.

The government has promised to provide internships in top companies for the young people in the country. "Our government will launch a scheme to provide internship opportunities in 500 top companies to 1 crore youth. They will get exposure to business and employment opportunities. Internship allowance of Rs 5,000 per month and one-time assistance of Rs 6,000 will be provided.   Companies will be expected to bear the expenses of the training cost and 10% of their internship cost from their CSR funds," Ms Sitharaman said while presenting the Union budget 2024-25 in the Lok Sabha earlier today.

Besides, the government has promised to pay a month's salary to first-time workers across all sectors.

The employees will be identified when an employer picks up a first-timer through EPFO credit, she said, calling the scheme for first-timer employees "very innovative".

It is precisely this point that has been disputed by the Congress, which called the scheme a "copy-paste exercise".

"I am glad to know that the Hon'ble FM has read the Congress Manifesto LS 2024 after the election results. I am happy she has virtually adopted the Employment-linked incentive (ELI) outlined on page 30 of the Congress Manifesto... I wish the FM had copied some other ideas in the Congress Manifesto. I shall shortly list the missed opportunities," posted senior party leader P Chidambaram on X, formerly Twitter.