ELI Scheme Approved: INR 15,000 for New Employees, INR 3,000 Monthly for Employers – Full Breakdown

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.