Shamini 
(C): Twitter
The Union Cabinet headed by Prime Minister Narendra Modi has approved the Employment Linked Incentive (ELI) Scheme, which aims to create more than 3.5 crore jobs over a two-year period. The scheme has a budget outlay of INR 99,446 crore and aims to increase employment, particularly in manufacturing, and encourage social security and formalisation of the workforce.
Part A: INR 15,000 Incentive for First-Time Employees
Those registered with EPFO for the first time will be entitled to one month’s wage (not exceeding INR 15,000) in two parts:
1. First part: after 6 months of uninterrupted service.
2. Second part: after 12 months of continuous service and completion of a financial literacy course.
Only employees who receive monthly wages of INR 1 lakh or less are eligible. Some of this amount is expected to be deposited in a savings deposit to support the establishment of long-term financial habits. This component aims to empower 1.92 crore youth entering the workforce for the first time.
Part B: Incentives for Employers
Employers entering into additional hires will receive up to INR 3,000/month for two years (or four years for manufacturers). The only requirements are:
Minimum of 2 new hires (for businesses with 0-50 employees)
Minimum of 5 new hires (for businesses with 51 or more employees)
New hires must remain employed for a minimum of 6 months.
Incentive Structure
EPF wage of up to INR 10,000 – Employees receive INR 1,000/month.
EPF wage of INR 10,001 – INR 20,000: Incentive rises to INR 2,000/month.
EPF wage of INR 20,001 – INR 100,000: Maximum benefit of INR 3,000/month.
Employers must be registered with EPFO and payments will be deposited into PAN linked accounts; employees will receive incentives via DBT into Aadhar-linked accounts.
The goal of this scheme is to generate jobs, support the industries and formalise the labour force and build a strong and secure workforce for the future.
