PM Employment Linked Incentive Scheme B: Job Creation in Manufacturing

Introduction

• On 23rd of July, Finance Minister Shrimati Nirmala Sitharaman presents the budget in the parliament session.
• Prime Minister's Package for Employment and Skilling is announced by her for the youth in which there are 5 Schemes.
• "Employment Linked Subsidy Scheme B: Job Creation in Manufacturing is one of major employment generation scheme in the sector of manufacturing.
• The main objective of Indian Government behind starting this scheme is to encourage youths to join manufacturing sector and takes part in nation building.
• Government of India now provide incentive to both employee in employer of manufacturing sector under Scheme B: Job Creation in Manufacturing Sector of Employment Linked Subsidy Scheme.
• Employer and Employee will now get incentive according to their EPFO contribution from the Government under Employment Linked Incentive Scheme B: Job Creation in Manufacturing.
• This scheme will promote employment in manufacturing sector and encourage employers to recruit first time employee.
• Only first time employee applying in manufacturing sector are eligible to apply for incentive.
• Whereas, it is mandatory for employer to recruit 50 or 25% of baseline employee whichever is lower in order to avail the benefit of Scheme B.
• Corporate or Non Corporate Entities who has a track record of 3 years of EPFO contribution are eligible for yearly incentive under Employment Linked Incentive Scheme B.
• If any employee salary is more than Rs. 1 lakh per month then he/ she is not eligible to apply for yearly incentive.
• Incentive will only calculated on a maximum amount of Rs. 25,000/- per month if the employee salary is higher than that.
• Yearly incentive provided for 4 years equally to employer and employee under Employment Linked Incentive Scheme B: Job Creation in Manufacturing sector are as follows :-
  • 24% in 1st Year.
  • 24% in 2nd Year.
  • 16% in 3rd Year.
  • 8% in 4th Year.
• More than 30 lakh youth will get benefit with their employers under Employment Linked Incentive Scheme B in manufacturing sector.
• Rs. 52,000/- Crore Budget will be allocated for the proper implementation of this scheme.
• The time duration of Scheme B of Employment Linked Incentive Scheme is 2 years.
• Incentive will be directly transferred in the EPFO account of employer and employee.
• Application Form, Mode of Application and Remaining Eligibility Conditions of Scheme B of Employment Linked Incentive Scheme will be clear once the guidelines is released.
• We will update the page as soon as we get any information.

Benefits of the Scheme

• Employee and its Employer will get the below mentioned benefits under newly announced Employment Linked Incentive Scheme B: Job Creation in Manufacturing :-
  • Yearly Incentive will be provided to Employer and Employee.
  • Incentive will be provided to both Employer and Employee according to their EPFO Contribution.
  • Incentive under this scheme will be provided for a period of 4 year.
  • The following incentive will be paid partly to the employee and partly to the employer for 4 years under Scheme B: Job Creation in Manufacturing of Employment Linked Incentive Scheme :-

    Year	Incentive Percentage % of Salary/ Wage shared equally between employer and employee)
    1	24
    2	24
    3	16
    4	8

Eligibility Criteria

• Benefits of PM Employment Linked Incentive Scheme B: Job Creation in Manufacturing will be provided to those Employer and Employee who fulfil the following eligibility criteria :-

  For Employee :- Only First Time Employee in Manufacturing Sector are Eligible. Employee should be a In-Sourced Employee. Monthly Salary of Employee should not be more than Rs. 1 Lakh per month. Incentive will be Calculated on a Maximum Amount of Rs. 25,000/-. (In case when salary is more than 25k) For Employer :- Employer should have 3 years of track record in EPFO Contribution. Employer should hire 25% of baseline or 50 (whichever is lower) Employee which are not enrolled earlier in EPFO. Incentive will be Calculated on a Maximum Amount of Rs. 25,000/-. (In case when salary is more than 25k)

Documents Required

• The following documents will expected to be required at the time of applying for PM's Employment Linked Incentive Scheme B: Job Creation in Manufacturing :-

  For Employee :- Employment Proof/ Joining Letter. EPFO Registration Number. Aadhar Card. Email ID. Mobile Number. Bank Account Details. Passport Size Photo. For Employer :- Employer Registration Details. Employer Photo. EPFO Registration Details. Complete Buora of Hired First Timer Employee. Bank Account Details of Employer.

How to Apply

• While presenting the budget on 23-07-2024, Finance Minister Smt. Nirmala Sitharaman announced Employment Linked Incentive Scheme B for Job Creation in Manufacturing Sector.
• Indian Government's concerned department will draft the Guidelines of Employment Linked Incentive Scheme B: Job Creation in Manufacturing.
• Then the Cabinet of Indian Government will approve it and give its nod to implement this scheme in whole country.
• This is the only information about PM Employment Linked Incentive Scheme B: Job Creation in Manufacturing is available right now.
• Application Process of Employment Linked Incentive Scheme B: Job Creation in Manufacturing is also not clear yet.
• Government of India decides the mode of application whether to accept applications through Online Application Form or through Offline Application Form.
• Website of Employment Linked Incentive Scheme B: Job Creation in Manufacturing might also made for employer and employees to apply in case of online mode of application.
• Application Procedure of Employment Linked Incentive Scheme B: Job Creation in Manufacturing is cleared after the release of Guidelines.
• We will update the information about Employment Linked Incentive Scheme B for Job Creation in Manufacturing as soon as we get any.

Important Links

• PM Employment Linked Incentive Scheme B: Job Creation in Manufacturing Application Form along with its guidelines will be released very soon by the concerned department.

Contact Details

• PM Employment Linked Incentive Scheme B: Job Creation in Manufacturing Contact Details will be soon released by the Government.