Employment-Linked Incentive Schemes Sent Back for Safeguards
Why in the news
The Cabinet sent back the Labour Ministry’s plan, asking for a tighter design so that only genuine employers and workers gain.
Key facts
- Outlay: ₹1.07 lakh crore over five years; target: 29 million jobs.
- Past concern: Atmanirbhar Bharat Rojgar Yojana (ABRY) saw fake firms claim incentives.
| Scheme | Design |
|---|---|
| Scheme A | Subsidy for new workforce entrants: a month’s wage, capped at ₹15,000, paid in three instalments |
| Scheme B (manufacturing) | Reimbursement of 24%, 24%, 16% and 8% across Years 1 to 4; employers must add 50% or 25% of baseline headcount via EPFO and retain them 12 months |
Safeguards under discussion
- Aadhaar checks, though the government doubts they alone stop fraud.
- Periodic audits of beneficiary firms.
- A stronger EPFO to handle extra payrolls.
Exam angle
- Nodal ministry: Labour and Employment.
- Earlier scheme with misuse: ABRY.