Purpose:
👉 Create formal employment and increase social security coverage by encouraging employers to hire and retain workers in the organised sector.
🔑 Key Features
Employment Generation: Focus on creating new, formal jobs, especially for youth and first-time job seekers.
Incentives to Employers: Government provides financial incentives/subsidies to employers for adding new employees to payrolls.
Formalisation of Workforce: Encourages registration under EPFO/ESIC, bringing workers into the social security net.
Target Sectors: MSMEs, manufacturing, services, and labour-intensive industries.
Skill & Productivity Push: Linked with skilling and upskilling initiatives to improve employability.
🎯 Beneficiaries
Youth and job seekers entering the formal labour market
Employers/MSMEs expanding their workforce
First-time formal employees, especially in private sector
📈 Why it is Important
Tackles unemployment and underemployment
Promotes formalisation of jobs
Supports the goal of “Viksit Bharat” (Developed India) by strengthening human capital
