To boost creation of new jobs in the country, Finance Minister Arun Jaitley said in his third budget that the government will pay 8.33 percent of the Employee Provident Fund (EPF) for all new employees for the first three years.
The government will contribute the amount on behalf of the employers and has set aside Rs. 1,000 crore for the programme. The move is aimed at encouraging the companies to create more jobs.
"In order to incentivise creation of new jobs in the formal sector, the government will pay 8.33 per cent to EPS for all new employees enrolling in EPFO for the first three years of employment," Arun Jaitley said.
The scheme will be applicable to employees with a monthly salary of Rs 15,000.
"In order to channelise this intervention towards target groups of semi-skilled and unskilled workers, the scheme will be applicable to those with the salary of up to Rs. 15,000 per month. I made a provision of Rs. 1,000 crore for this scheme," the minister said.
He also announced a proposal to broaden and liberalize the scope of employment generation incentives available under 80JJAA of the Income Tax Act.
"Many more jobs are created provided the regulations are simplified. If shopping malls are kept open all seven days a week why not small and medium shops. These shops should be given a choice to remain open on all seven days on voluntary basis," Jaitley said.