Current Socio-Economic Problems
Employment-linked Incentive Scheme
▪ The Union Cabinet has approved the Employment-linked Incentive Scheme. This scheme is designed to support new job seekers and organizations that provide employment opportunities to them.
▪ This scheme will be implemented as part of the Prime Minister’s package of five schemes that will facilitate employment, skill development, and other opportunities for 4.1 crore youth.
▪ Rs. 2 lakh crores has been allocated for the Employment-linked Incentive Scheme in the 2024-25 Union Budget.
▪ This scheme has two components. The first component focuses on first-time employees. The second component focuses on employers:
Incentive for First-time Employees:
▪ The government will provide up to Rs. 15,000 in two installments as one month’s Employee Provident Fund contribution to first-time employees registered with the Employee Provident Fund Organization.
▪ Employees earning up to Rs. 1 lakh salary will be eligible for this.
Support for Employers:
▪ Employers with employees earning up to Rs. 1 lakh maximum salary will receive incentives under this scheme.
▪ Depending on the number of employees, employers will receive up to Rs. 3,000 per employee per month as incentive.
▪ This incentive will be provided for 2 years. However, for the manufacturing sector, the incentive will be extended to the 3rd and 4th years as well.
▪ The benefits of this scheme will apply to jobs created from August 1, 2025, to July 31, 2027.
Tax Structure in India
GST Implementation Day
▪ GST was introduced on July 1, 2017, completing 8 years.
▪ Integrating 17 taxes and 13 additional levies except for a few state taxes in the country, Goods and Services Tax is levied at four rates: 5%, 12%, 18%, and 28%.
▪ A record Rs. 22.08 lakh crores in GST collection has been achieved in the financial year 2024-25, an unprecedented amount.
