PM Internship Scheme 2024

Prime Minister’s 5 Package for Employment and Skilling

Outline of Schemes

(ELI = Employment Linked Incentive)

ELI Scheme A: First Timers

One month’s wage as subsidy (maximum ₹15,000)
Applicable to all sectors
First timers have a learning curve before they become fully productive; subsidy is to assist employees and employers in hiring of first timers.
Applicable to all persons newly entering the workforce (EPFO) with wage/salary less than ₹1 lakh per month.
Subsidy will be paid to the employee in three instalments
Employee must undergo compulsory online Financial Literacy course before claiming the second instalment.
Subsidy to be refunded by employer if the employment to the first timer ends within 12 months of recruitment.
Expected to cover approximately one crore persons per annum.
Scheme will be for 2 years

ELI Scheme B: Job Creation in Manufacturing

Applicable for substantial hiring of first-time employees in the manufacturing sector
All employers which are corporate entities and those non-corporate entities with a three-year track record of EPFO contribution will be eligible.
Employer must hire at least the following number of previously non-EPFO enrolled workers:
- 50 or
- 25% of the baseline (previous year’s number of EPFO employees)
  [whichever is lower]
Incentive will be paid for four years partly to the employee and partly to the employer as follows:

Year	Incentive (as % of wage / salary, shared equally between employer & employee)
1	24
2	24
3	16
4	8

Employer must maintain threshold level of enhanced employment throughout, failing which subsidy benefit will stop.
Employee must be directly working in the entity paying salary/wage (i.e. in-sourced employee).
Employees with a wage/ salary of up to ₹1 lakh per month will be eligible, subject to contribution to EPFO.
For those with wages/salary greater than ₹25,000/month, incentive will be calculated at ₹25,000/month.
Subsidy to be refunded by employer if the employment to first timer ends within 12 months of recruitment.
This subsidy will be in addition to benefit under Part-A
Scheme will be for 2 years

ELI Scheme C: Support to Employers

Applicable to an employer who:
- Increases employment above the baseline (previous year’s number of EPFO employees) by at least two employees (for those with less than 50 employees) or 5 employees (for those with 50 or more employees) and sustains the higher level, and
- For employees whose salary does not exceed ₹1,00,000/month
- New employees under this Part need not be new entrants to EPFO
For two years Government will reimburse EPFO employer contribution [up to] ₹3,000/month to the Employer for the additional Employees hired in the previous year.
If the employer creates more than 1000 jobs:
- Reimbursement will be done quarterly for the previous quarter
- Subsidy will continue for the 3^rd and 4^th year on the same scale as Employer benefit in Part-B
Not applicable for those Employees covered under Part-B.
This subsidy will be in addition to benefit under Part-A.
Scheme will be for 2 years

Scheme 4: Skilling Programme and Upgradation of Industrial Training Institutes

1000 Industrial Training Institutes (ITIs) to be upgraded in hub and spoke arrangements in five years
New Centrally Sponsored Scheme in collaboration with states and industry
Focus on outcome and quality of skilling
Course content and design aligned to needs of industry
Total outlay of ₹60,000 crore over five years
- Government of India—₹30,000 crore
- State Governments—₹20,000 crore
- Industry—₹10,000 crore (including CSR funding)
200 hubs and 800 spoke ITIs –all with industry collaboration
- Re-design and review of existing courses
- New courses
- 1-to-2-year courses in all 1000 ITIs
- Short term specialised courses in Hub ITIs
Capacity augmentation of 5 national institutes for training of trainers
20 lakh students expected to benefit

Scheme 5: Internship in Top Companies

One crore youth to be skilled by India’s top companies in five years.
Twelve months Prime Minister’s Internship with monthly allowance of ₹5,000
Applicable to those who are not employed and not engaged in full time education.
Youth aged between 21 and 24 will be eligible to apply.
Cost sharing (per annum):
- Government – ₹54,000 towards monthly allowance (plus ₹6,000 grant for incidentals)
- Company – Rs 6,000 from CSR funds towards monthly allowance
- Training cost to be borne by the Company from CSR funds.
- Administrative costs to be borne by respective parties (for the Company, reasonable administrative expenses can be counted as CSR expenditure)
Participation of companies is voluntary
Applications through an online portal
Company to select from a short list; short listing based on objective criteria with emphasis on those with lower employability
Ineligible candidates (indicative list)
- Candidate has IIT, IIM, IISER, CA, CMA etc. as qualification
- Any member of the family is assessed to Income Tax
- Any member of the family is a government employee, etc.
Company is expected to provide the person an actual working experience on a skill in which the company is directly involved.
At least half the time should be in actual working experience/job environment, not in classroom.
In case the Company cannot directly do so, it must tie-up with:
- Companies in its forward and backward supply chain (e.g. suppliers or customers) or
- Other Companies/Institutions in its Group or otherwise
Will be coordinated with State Government initiatives wherever applicable.
Phase 1 of the scheme will be for 2 years followed by Phase 2 for 3 years

Coverage and Estimated Central Outlay

	Enrolment Duration	Expenditure Duration	Beneficiaries	Central Outlay
	Years		(Lakhs)	(₹Crore)
Employment Linked Incentive
Scheme A (first timers)	2	3	210	23,000
Scheme B (bulk hiring of first timers in manufacturing)	2	6	30	52,000
Scheme C (job creation)	2	6	50	32,000
Internship Programme (Phase-1)	2	3	30	19,000
Internship Programme (Phase-2)	3*	4*	70	44,000
Upgradation of ITIs	N/A	5	20	30,000
Total			410	2,00,000
*Starting from third year

Note: Details of the schemes are subject to modification during the process of appraisal and approval.

UNION BUDGET 2024-25 PARTICULARLY FOCUSSES ON EMPLOYMENT, SKILLING, MSMEs AND MIDDLE CLASS: SMT. NIRMALA SITHARAMAN Prime Minister’s Package Worth Rs. 2 Lakh Crore Central Outlay Announced; Employment, Skilling, and Other Opportunities for 4.1 Crore Youth Over a 5-Year Period
“In this Budget, we particularly focus on employment, skilling, MSMEs and the middle class”, stated Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Union Budget 2024-25 in Parliament. Taking forward the theme of the first full-year Budget of the newly elected government, the Finance Minister announced Prime Minister’s package of 5 schemes and initiatives. The package aims to facilitate employment, skilling, and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of Rs. 2 lakh crores. “This year, I have made a provision of Rs.1.48 lakh crores for education, employment and skilling”, she added. Delving into further details of the announcement, Smt. Sitharaman stated that the government will implement following three schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package. These will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers, Finance Minister added.

UNION BUDGET 2024-25 PARTICULARLY FOCUSSES ON EMPLOYMENT, SKILLING, MSMEs AND MIDDLE CLASS: SMT. NIRMALA SITHARAMAN

Prime Minister’s Package Worth Rs. 2 Lakh Crore Central Outlay Announced; Employment, Skilling, and Other Opportunities for 4.1 Crore Youth Over a 5-Year Period

“In this Budget, we particularly focus on employment, skilling, MSMEs and the middle class”, stated Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Union Budget 2024-25 in Parliament.
Taking forward the theme of the first full-year Budget of the newly elected government, the Finance Minister announced Prime Minister’s package of 5 schemes and initiatives. The package aims to facilitate employment, skilling, and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of Rs. 2 lakh crores. “This year, I have made a provision of Rs.1.48 lakh crores for education, employment and skilling”, she added.
Delving into further details of the announcement, Smt. Sitharaman stated that the government will implement following three schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package. These will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers, Finance Minister added.

Latest News – PM Internship Scheme

Employment and Skilling 2024: PM’s 5 Schemes with Details

The Indian government has announced a package of 5 schemes for employment and skilling, allocating Rs 1.48 lakh crore for education, employment, and skills. The schemes aim to support first-time employment, job creation in manufacturing, employer support, skilling, and internships.

Employment and Skilling 2024: Finance Minister Nirmala Sitharaman unveiled a significant allocation of Rs 1.48 lakh crore for education, employment, and skill development in the Budget 2024. Key highlights include financial assistance for student loans up to Rs 10 lakh for higher education in Indian institutions and a new collaborative skilling program with state governments and industries. This initiative aims to empower approximately 20 lakh young individuals with skills over the next five years, enhancing their employability and prospects.

Check PM’s Schemes for Job Employment with Details

Finance Minister Nirmala Sitharaman revealed that the government has earmarked Rs 1.48 lakh crore to bolster education, employment, and skill development. As part of the Prime Minister’s comprehensive package, five innovative schemes will be launched to drive employment, skilling, and various opportunities for a staggering 4.1 crore young individuals over the next five years, paving the way for a brighter future.

A look at everything on offer for youths seeking jobs and employers. Here is the complete list of schemes along with their details:

(ELI = Employment Linked Incentive)

ELI Scheme A: First Timers

Objective: Encourage first-time employment and support new entrants in the workforce

Benefits:

First-time employees registered in the EPFO will receive a one-month salary of up to ₹15,000.
Payment will be made in three instalments to ensure continuous support.
This scheme aims to ease the transition into the workforce and provide financial stability during the initial phase of employment.

Details:

This scheme will offer month’s wage as subsidy (maximum Rs 15,000) and will be applicable to all sectors. Those newly entering the workforce (EPFO) with wage/salary less than Rs 1 lakh per month will be eligible for it. The scheme is expected to benefit 2.1 crore youth.

Subsidy will be paid to the employee in three installments.
Employee must undergo compulsory online Financial Literacy course before claiming the second installment.
Subsidy to be refunded by employer if the employment to the first-timer ends within 12 months of recruitment.
Expected to cover approximately 1 crore persons per annum.
Scheme will be for 2 years.

This scheme, which is expected to benefit 2.1 crore youth over 2 years, will provide one-month wage to all persons newly entering the workforce in all formal sectors. The eligibility limit will be a salary of Rs. 1 lakh per month. Direct benefit transfer of one-month salary will be up to Rs. 15,000 in 3 installments to first-time employees, as registered in the EPFO. The scheme is expected to benefit 210 lakh youth.This subsidy would be vital for employees and employers in hiring of first timers, by supporting their learning curve before they become fully productive. The employee, in turn, must undergo compulsory online financial literacy course before claiming the second instalment. Further, the subsidy would have to be refunded by the employer if the employment to the first timer ends within 12 months of recruitment.

ELI Scheme B: Job Creation in Manufacturing

Objective: Boost job creation in the manufacturing sector and encourage employers to hire new employees

Benefits:

Incentives will be provided directly to both employees and employers based on their EPFO contributions.
Incentives will be scaled according to the number of years of employment, with a focus on the first four years.
This scheme aims to stimulate job growth in the manufacturing sector and support employers in expanding their workforce.

Details:

It will be applicable for substantial hiring of first-time employees in the manufacturing sector. All employers which are corporate entities and those non-corporate entities with a three year track record of EPFO contribution will be eligible. The scheme is expected to benefit 30 lakh youth entering employment, and their employers.

Employer must hire at least the following number of previously non-EPFO enrolled workers:

50 or 25% of the baseline (previous year’s number of EPFO employees) [whichever is lower].
Incentive will be paid for four years partly to the employee and partly to the employer as follows

Employer must maintain threshold level of enhanced employment throughout, failing which subsidy benefit will stop.
Employee must be directly working in the entity paying salary/wage (i.e. in-sourced employee).
Employees with a wage/ salary of up to Rs 1 lakh per month will be eligible, subject to contribution to EPFO.
For those with wages/salary greater than Rs 25,000/month, incentive will be calculated at Rs 25,000/month.
Subsidy to be refunded by employer if the employment to first-timer ends within 12 months of recruitment.
This subsidy will be in addition to benefit under Part-A.
Scheme will be for 2 years.

Aiming at substantial hiring of first time employees in manufacturing, this scheme will incentivize additional employment in the sector, thereby is expected to benefit 30 lakh youth entering employment, and their employers. An incentive will be provided at specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first 4 years of employment. The subsidy would have to be refunded by the employer if the employment to the first timer ends within 12 months of recruitment.

ELI Scheme C: Support to Employers

Objective: Encourage employers to hire additional employees and support employment generation

Benefits:

The government will reimburse up to ₹3,000 per month for two years towards EPFO contributions made by employers for each additional employee hired.
This scheme aims to reduce the financial burden on employers and incentivize them to create new job opportunities.

Details:

It will be applicable to an employer who increases employment above the baseline (previous year’s number of EPFO employees) by at least two employees (for those with less than 50 employees) or 5 employees (for those with 50 or more employees) and sustains the higher level, and for employees whose salary does not exceed Rs 1,00,000/month. The scheme is expected to incentivise additional employment of 50 lakh persons.

New employees under this Part need not be new entrants to EPFO.

For two years, the Government will reimburse EPFO employer contribution [up to] Rs 3,000/month to the Employer for the additional Employees hired in the previous year.

If the employer creates more than 1,000 jobs:

Reimbursement will be done quarterly for the previous quarter.
Subsidy will continue for the 3rd and 4th year on the same scale as Employer benefit in Part-B.
Not applicable for those Employees covered under Part-B.
This subsidy will be in addition to benefit under Part-A.
The scheme will be for 2 years.

This employer-focussed scheme will cover all additional employment within a salary of Rs. 1 lakh per month in all sectors. New employees under this Part need not be new entrants to EPFO. The government will reimburse to employers up to Rs. 3,000 per month for 2 years towards their EPFO contribution for each additional employee. The scheme is expected to incentivize additional employment of 50 lakh persons.

Scheme 4: Skilling Programme and Upgradation of Industrial Training Institutes

Objective: Enhance skills and employability of youth across the country

Benefits:

20 lakh youth will be skilled over five years.
1,000 ITIs will be upgraded in a hub-and-spoke arrangement to improve infrastructure and training facilities.

Details:

A total of 1,000 Industrial Training Institutes (ITIs) to be upgraded in hub and spoke arrangements in five years. There will also be a new Centrally Sponsored Scheme in collaboration with states and industry. The focus will be on outcome and quality of skilling and the course content and design will be aligned with the industry needs. As part of the scheme, 20 lakh youth will be skilled over a 5-year period.

It will be given a total outlay of Rs 60,000 crore over five years:

Government of India: Rs 30,000 crore
State Governments: Rs 20,000 crore
Industry: Rs 10,000 crore (including CSR funding)
200 hubs and 800 spoke ITIs — all with industry collaboration — will be set up. It will include:
Re-design and review of existing courses
New courses
- to 2-year courses in all 1,000 ITIs
Short-term specialised courses in Hub ITIs

Steps will be taken for the capacity augmentation of five national institutes for the training of trainers.

The 4^th scheme mentioned in the Budget Speech under the Prime Minister’s package is a new centrally sponsored scheme, for skilling in collaboration with State governments and Industry. The scheme, with a total outlay of Rs. 60,000 crore, aims at skilling 20 lakh youth over a 5-year period. To achieve this target, 1,000 Industrial Training Institutes (ITIs) will be upgraded in a hub and spoke arrangements with outcome orientation. Further, the course content and design will be aligned to the skill needs of the industry and new courses will be introduced for emerging needs.

Scheme 5: Internship in Top Companies

Objective: Provide valuable work experience and exposure to top companies for youth

Benefits:

1 crore youth will be placed in internships in 500 top companies over five years.
Internships will be designed to provide hands-on experience and skill development opportunities.
This scheme aims to enhance employability and prepare youth for the workforce.

Details:

The government plans to skill one crore youth in India’s top companies in five years under the 12-month Prime Minister’s Internship with a monthly allowance of Rs 5,000, along with a one-time assistance of Rs 6,000. It will be applicable to those who are not employed and not engaged in full-time education. Youth aged between 21 and 24 will be eligible to apply.

Cost sharing (per annum)

Government: Rs 54,000 towards monthly allowance (plus Rs 6,000 grant for incidentals)
Company: Rs 6,000 from CSR funds towards monthly allowance
Training costs to be borne by the Company from CSR funds
Administrative costs to be borne by respective parties (for the Company, reasonable administrative expenses can be counted as CSR expenditure)

Participation of companies is voluntary. Applications through an online portal. Company to select from a short list; short listing based on objective criteria with emphasis on those with lower employability.

Ineligible candidates (indicative list)

Candidate has IIT, IIM, IISER, CA, CMA etc as qualification
Any member of the family is assessed to Income Tax
Any member of the family is a government employee, etc.

The company is expected to provide the person an actual working experience on a skill in which the company is directly involved. At least half the time should be in actual working experience/job environment, not in classroom. In case, the Company cannot directly do so, it must tie-up with:

Companies in its forward and backward supply chain (e.g. suppliers or customers) or Other Companies/Institutions in its Group or otherwise.
Will be coordinated with State Government initiatives wherever applicable.
Phase 1 of the scheme will be for 2 years followed by Phase 2 for 3 years.

Talking about the 5^th scheme under the Prime Minister’s package, the Finance Minister stated, “Our government will launch a comprehensive scheme for providing internship opportunities in 500 top companies to 1 crore youth in 5 years (participation of companies is voluntary). They will gain exposure for 12 months to real-life business environment, varied professions and employment opportunities”. An internship allowance of Rs. 5,000 per month, along with a one-time assistance of Rs. 6,000 will be provided. Companies will be expected to bear the training cost and 10 per cent of the internship cost from their CSR funds, Smt. Sitharaman added. Youth aged between 21 and 24, who are not employed and not engaged in full time education, will be eligible to apply.

Frequently Asked Questions (FAQ)

Q1. What is the PM Internship Scheme?

The PM Internship Scheme is a government initiative aimed at providing internship opportunities to one crore youth in India over the next five years. The program offers exposure to real-life business environments and various professions, helping interns gain valuable work experience.

Q2. Who is eligible for the PM Internship Scheme?

To be eligible for the PM Internship Scheme, candidates must:

– Be aged between 21 and 24 years.
– Not be employed or engaged in full-time education.
– Not have qualifications from IITs, IIMs, IISERs, CA, CMA, etc.
– Not have a family member in a government job or be an income tax assessee.

Q3. How can I apply for the internship?

Applications for the internship can be made through the official online portal. Details about the application process will be announced soon.

Q4. What is the duration of the internship?

The internship duration is 12 months, during which interns will gain hands-on experience in their chosen field.

Q5. What are the benefits of the internship?

Interns will receive an allowance of ₹5,000 per month and a one-time assistance of ₹6,000. Additionally, they will gain practical experience and improve their employability.

Q6. Are companies required to participate in the scheme?

Participation by companies is voluntary. However, companies that do participate are expected to bear the training cost and 10% of the internship cost from their CSR funds.

Q7. What kind of work experience will interns receive?

Interns will spend at least half of their internship period in actual working environments, gaining hands-on experience in skills relevant to the company’s operations.

Q8. Can companies collaborate with other organizations for the internship?

Yes, if a company cannot provide direct work experience, it must collaborate with other companies in its supply chain or group to ensure interns receive the necessary training.

Q9. What is the selection process for interns?

Interns will be selected based on objective criteria, with a focus on candidates with lower employability. The selection process will be transparent and merit-based.

Q10. Where can I find more information about the PM Internship Scheme?

For more details, please visit our official website or contact our support team at support@pminternshipscheme.com.

Q11. Is there any age relaxation for candidates from reserved categories?

Yes, candidates from SC/ST/OBC categories may be eligible for age relaxation as per government norms. Please refer to the official guidelines for detailed information.

Q12. What documents are required for the application?

Applicants will need to submit the following documents:

– Aadhar Card or any other valid ID proof
– Educational certificates
– Proof of age
– Caste certificate (if applicable)
– Recent passport-sized photograph

Q13. Can I choose the company or sector for my internship?

While you can indicate your preferences during the application process, the final placement will depend on the availability of positions and the matching of your skills with the company’s requirements.

Q14. Will there be any training provided before the internship starts?

Yes, selected interns will undergo an orientation program to familiarize them with the internship process, expectations, and basic workplace etiquette.

Q15. What happens if I need to leave the internship before completion?

If you need to leave the internship before completion, you must inform your supervisor and the program coordinator. Depending on the circumstances, you may be required to return a portion of the stipend received.

Q16. Are there any performance evaluations during the internship?

Yes, interns will be evaluated periodically based on their performance, attendance, and adherence to company policies. Feedback will be provided to help interns improve and grow professionally.

Q17. Can I apply for the PM Internship Scheme if I have already completed another government internship?

Yes, you can apply for the PM Internship Scheme even if you have completed another government internship, provided you meet the eligibility criteria.

Q18. How will the stipend be disbursed?

The stipend will be disbursed monthly directly to the intern’s bank account. Ensure that your bank details are correctly provided during the application process.

Q19. What support is available for interns during the program?

Interns will have access to a support team that can assist with any issues or concerns during the internship. Additionally, mentors and supervisors will be available to guide and support interns in their professional development.

Q20. Can I apply for multiple internships under the PM Internship Scheme?

No, candidates can apply for only one internship at a time under the PM Internship Scheme. However, you can reapply for future batches if you are not selected in the current one.

Q21. What is the selection timeline for the PM Internship Scheme?

The selection timeline will be announced on the official website. Generally, the process includes application submission, document verification, and final selection, which may take a few weeks.

Q22. Can international students apply for the PM Internship Scheme?

No, the PM Internship Scheme is currently open only to Indian citizens. International students are not eligible to apply.

Q23. Is there any reservation for differently-abled candidates?

Yes, there is a reservation for differently-abled candidates as per government norms. Please refer to the official guidelines for detailed information.

Q24. What kind of projects will interns work on?

Interns will work on a variety of projects depending on the company’s needs and the intern’s skills. Projects may include research, data analysis, marketing, operations, and more.

Q25. Will I receive a certificate after completing the internship?

Yes, interns who successfully complete the internship will receive a certificate of completion from the PM Internship Scheme.

Q26. Can I extend my internship beyond the initial 12 months?

No, the internship duration is fixed at 12 months. Extensions are not permitted under the PM Internship Scheme.

Q27. What should I do if I face any issues during my internship?

If you face any issues during your internship, you should first discuss them with your supervisor. If the issue remains unresolved, you can contact the support team for further assistance.

Q28. Are there any specific dress code requirements for interns?

Dress code requirements may vary depending on the company. Generally, interns are expected to dress professionally and adhere to the company’s dress code policies.

Q29. How will I know if my application has been accepted?

You will receive an email notification once your application has been reviewed and accepted. Make sure to check your email regularly for updates.

Q30. Can I reapply if my application is rejected?

Yes, you can reapply for the PM Internship Scheme in future batches if your application is rejected. Ensure that you meet all eligibility criteria and provide accurate information in your application.

Please note that this information is subject to updates and modifications as new information becomes available or as the official government website is published. If you have any questions or need further information, feel free to contact us. I hope this information helps you! If you need more information or have any other questions, feel free to ask.