Leveraging the 2024 Union Budget for HR

Here’s how HR can capitalize on key budgetary provisions:

1.     Job Creation and Skilling:

Job Creation: The budget allocates ₹2 lakh crore for job creation over the next 5 years. This significant investment aims to boost employment opportunities across various sectors.

Employment Skilling Scheme: The government plans to provide skills to 20 lakh youth during this period. HR professionals can collaborate with skill development agencies and vocational training institutes to align their workforce with industry demands.

Direct Benefit Transfer for First-Time Employees: Employees registered in the EPFO for the first time will receive a one-month wage as a direct benefit transfer, up to ₹15,000. HR can ensure seamless implementation of this benefit.

Enhancing Female Workforce Participation: The budget emphasizes opening working women hostels and creches. HR can actively promote these facilities to encourage more women to join the workforce.

Employer Incentives: Employers will receive reimbursement for EPFO contributions for each additional employee. This incentivizes organizations to hire more individuals.

Internship Scheme: The budget introduces an internship scheme that offers opportunities to 1 crore youths in the top 500 companies over 5 years. HR can collaborate with these companies to provide meaningful internships and gain fresh talent.

Internship Allowance: Interns will receive an allowance of ₹5,000 per month. HR can structure internship programs to align with organizational needs.

2. Ethical AI Practices:

The budget recognizes the importance of ethical AI adoption. HR professionals should stay informed about AI governance regulations and best practices.

Guardrails: HR can work with IT and legal teams to establish guardrails for AI implementation. These guardrails prevent biases, ensure transparency, and mitigate risks.

Model Cards: HR can advocate for the use of model cards—a standardized way to document AI models’ behaviour, limitations, and potential biases.

Cybersecurity Measures: As AI systems become integral to HR processes, cybersecurity measures are crucial. HR should collaborate with IT security experts to safeguard sensitive data.

Tax Slabs and Personal Taxation:
The budget proposes new income tax slabs for FY 2024-25. HR professionals should understand these changes to guide employees effectively.

Tax Planning: HR can educate employees about the revised tax slabs and help them optimize their tax liabilities. This includes exploring tax-saving investments and deductions.

Remember, HR’s role extends beyond financial management. It involves talent development, diversity, and strategic planning. By leveraging the budget’s provisions, HR professionals can create a positive impact on both employees and the organization