4 Takeaways For The Workforce From The Union Budget 2024 During the Monsoon Session of Parliament on Tuesday, Finance Minister Nirmala Sitharaman presented the Union Budget 2024–25. Breaking the record set by former prime minister Morarji Desai, who presented six consecutive budgets as finance minister between 1959 and 1964, Nirmala Sitharaman became the first finance minister to make seven consecutive budget addresses.
By Kavya Pillai
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
During the Monsoon Session of Parliament on Tuesday, Finance Minister Nirmala Sitharaman presented the Union Budget 2024–25. Breaking the record set by former prime minister Morarji Desai, who presented six consecutive budgets as finance minister between 1959 and 1964, Nirmala Sitharaman became the first finance minister to make seven consecutive budget addresses.
Nirmala Sitharaman presented her seventh budget, setting forward a number of priorities for stimulating economic growth and generating enough possibilities. These included employment and skill development, productivity and resilience in agriculture, and services. Here, we list the Union Budget 2024–25 initiatives targeted at salaried individuals and job seekers.
Increase in the standard deduction
The standard deduction for salaried employees under the new income tax regime will increase by 50% to ₹75,000 from ₹50,000, as revealed by Finance Minister Nirmala Sitharaman in the budget. The term "standard deduction" describes a fixed amount withheld from an employee's annual salary before determining the applicable income tax rate. Interestingly, there has been no announcement addressing the standard deduction under the previous tax system.
Change in income tax slabs
Nirmala Sitharaman also announced a relaxation of the income tax slabs under the new tax regimet for the current fiscal year in her address announcing the budget.
Up to ₹3 lakh: 0%
₹3 to ₹7 lakh: 5%
₹7 lakh to ₹10 lakh: 10%
₹10 lakh to ₹12 lakh: 15%
₹12 lakh to ₹15 lakh: 20%
Above ₹15 lakh: 30%
A month's salary for all new employees in the formal sector
Additionally, Nirmala Sitharaman declared that all those who are new to the workforce in all formal sectors will receive a one-month wage from the government. According to the finance minister, the government will give the employees their provident fund contribution directly. "...one month's salary to everyone starting work in any formal sector." A direct benefit transfer up to ₹15,000 in three installments of one month's salary would be given to first-time employees who are registered with the EPFO. A monthly salary of ₹1 lakh will be the upper limit for eligibility. During the Budget presentation, the Finance Minister stated that 210 lakh youth would benefit from the initiative.
Internship opportunities at top 500 companies
In addition, the finance minister announced during her Tuesday budget statement that the government will start a youth internship program at 500 of the best corporations. According to Sitharaman, the program will serve 10 million youth over the course of five years. In addition, trainees will get a one-time payment of ₹6,000 as well as a monthly internship allowance of ₹5,000. "Our government will launch a comprehensive scheme to provide internship opportunities in 500 top companies to 1 crore youth in 5 years as the 5th scheme under the Prime Minister's package." She stated in the Parliament that "they will be exposed for a full year to a variety of professions, real-world business environments, and employment opportunities."
