Union Budget 2025: Time to top up the PM Internship stipend?

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Posted by NewAdmin on 2025-01-31 09:08:21 |

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Budget 2025: Addressing Pay Disparity in the PM Internship Scheme

The Prime Minister's Internship Scheme (PMIS) has the potential to enhance youth employability, yet its stipend structure significantly lags behind market rates. While companies such as Reliance Industries, Tata Consultancy Services, HDFC Bank, and Maruti Suzuki have engaged with the program, the government's fixed stipend of Rs 5,000 per month—along with a one-time aid of Rs 6,000—falls short compared to prevailing industry standards.

Pay Gap and Industry Concerns
A report by TeamLease Edtech highlights that 81% of surveyed companies support the initiative, with 76% prioritizing tech-driven internships. However, industry norms indicate a stark pay disparity: manufacturing sector interns earn around Rs 19,000 per month, while IT firms offer up to Rs 25,000. This raises ethical concerns for companies with non-discrimination and fair pay policies. Many firms already offer higher stipends to their regular interns and view the government-fixed amount as inadequate for PMIS interns performing similar roles.

Corporate and Policy Recommendations
Companies are open to supplementing the government stipend but cannot offset this contribution against their Corporate Social Responsibility (CSR) budgets. Industry leaders argue that the upcoming Union Budget should address these discrepancies to attract top talent and ensure the program's effectiveness.

Proposed Solutions for Budget 2025

• Government Reimbursement: A higher one-time reimbursement to companies per intern, allowing firms to set competitive monthly stipends.
• CSR Reallocation: Mandating 25% of CSR funds to school education, ensuring long-term career development for economically weaker sections.

With 34.43% of companies already considering allocating up to 20% of their CSR budgets to internships, a structured approach in Budget 2025 could enhance the PMIS, making it more sustainable and impactful for both corporates and young professionals.

Go!