Hiring Alert: Top Companies to Offer Internships to 1 Crore Youth Over Next Five Years With Rs 5,000 Allowance

The Union Budget 2024 has highlighted skill development and the creation of employable youth as key objectives. The government has introduced a new internship scheme for 500 top companies in India to support this. Participation in the scheme is voluntary but significantly benefits organisations looking to build a future-ready workforce. The government expects to skill one crore youth through this initiative within five years.

Individuals aged 21 to 24 who are not currently employed or engaged in full-time education are eligible to apply. However, candidates from prestigious institutions such as IIT, IIM, IISER, CA, and CMA are not eligible. Additionally, applicants must not have any family members who are government employees or income tax assessees.

#WATCH | Union Minister Mansukh Mandaviya says, "One scheme has been introduced in the Budget for skill development in the country. Skilling is a requirement of today's India... Top companies will provide internships to one crore youth over the next five years, with an internship… pic.twitter.com/Qh90v6rFqx

— ANI (@ANI) July 27, 2024

"One scheme has been introduced in the Budget for skill development in the country. Skilling is a requirement of today's India... Top companies will provide internships to one crore youth over the next five years, with an internship allowance of Rs. 5,000 per month. The package will facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period," said Union Minister Mansukh Mandaviya.

Internships under this scheme will last for 12 months. Organisations are expected to provide interns with hands-on working experience in relevant skills. At least 50% of the internship period should involve work in a job environment rather than classroom instruction. If an organisation cannot provide this experience directly, it must collaborate with entities in its supply chain or related institutions.

The scheme offers a monthly internship allowance of INR 5,000. Over 12 months, this totals INR 60,000, plus an additional INR 6,000 for incidentals. The government will cover INR 54,000 of the monthly allowance and INR 6,000 for incidentals. Organisations will be responsible for INR 6,000 (10% of the internship allowance) and the training costs, which can be funded through their CSR budgets. CSR funds can also cover reasonable administrative expenses.

Applications will be submitted through an online portal, where organisations can select candidates based on objective criteria, prioritising those with lower employability.

The scheme raises several practical questions, such as whether the voluntary engagement of interns will count towards the statutory requirement under the Apprentices Act, 1961, which mandates that organisations engage 2.5% of their workforce as apprentices. Other concerns include the criteria for selecting the top 500 companies, limits on the number of interns an organisation can engage, and whether higher allowances than the minimum can be offered to interns.