1. Union Budget 2024: Major Announcements
Finance Minister Nirmala Sitharaman delivered the 2024 Union Budget this past Tuesday. She spotlighted key plans promoting work opportunities and skills growth in our nation. What caught everyone’s attention? A change in tax tiers and a predicted decrease in fiscal deficit for the 2025 budgetary year. Plus, they unveiled a thorough wage aid program. This move is set to help newcomers entering the formal labor market.
2.New Tax Slabs and Fiscal Measures
The budget introduced revised tax slabs to ease the tax burden on middle-class salaried individuals. The government has projected a reduction in the fiscal deficit for FY2025, indicating a positive economic outlook.
3. Wage Subsidy Scheme for Freshers
A key highlight of the budget is the wage subsidy scheme targeting first-time employees in the formal sector. Under this scheme, the government will provide a subsidy equivalent to one month’s salary, up to a maximum of Rs 15,000. The scheme is designed to assist freshers during their initial phase of employment, recognizing the learning curve before they become fully productive. The scheme requires new employees to be registered with the Employees’ Provident Fund Organisation (EPFO), and their monthly salary must not exceed Rs 1 lakh.
The subsidy will be disbursed in three installments, with the second installment contingent on the new hires completing an online Financial Literacy course. Employers are required to refund the subsidy if they terminate the employment of a new joiner within 12 months.
4. Paid Internship Opportunities
In addition to the wage subsidy scheme, the budget announced a policy to provide paid internships at India’s top 500 companies over the next five years. This initiative aims to support 10 million students, offering a monthly stipend of Rs 5,000 and a one-time assistance of Rs 6,000. The internships are expected to be funded partly by the companies’ Corporate Social Responsibility (CSR) initiatives.
FAQ
1. What are the new tax slabs introduced in Budget 2024?
The Union Budget 2024 introduced revised tax slabs, aimed at providing relief to middle-class salaried individuals. Specific details of the new slabs were not covered in this article but are available in the official budget documents.
2. Who is eligible for the wage subsidy scheme?
The wage subsidy scheme is available to first-time employees in the formal sector whose monthly salary does not exceed Rs 1 lakh. Employees must be registered with the EPFO.
3. How will the wage subsidy be paid out?
The wage subsidy will be paid in three installments. The first installment is given upon employment, and the second installment is conditional on completing an online Financial Literacy course.
4. What happens if a fresher’s employment is terminated within a year?
If an employer terminates the employment of a new joiner within 12 months, they must refund the subsidy amount.
5. Is there support for interns under the new budget?
Yes, the budget includes a scheme for paid internships at India’s top 500 companies, offering a stipend of Rs 5,000 per month and one-time assistance of Rs 6,000 to support their career start.
