Employment linked Incentive scheme (ELI) of Government of India

Employment Linked Incentive scheme (ELI)  has been approved by Union Cabinet chaired by the Prime minister Shri Narendra Modi to support employment generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector.

Below are the details about The Employment linked Incentive scheme (ELI)

• Ministry :  Ministry of Labour and Employment of Government of India
• Type: Direct Incentive Scheme to boost employment (Given directly in the bank accounts of beneficiaries)
• ELI Scheme Launched Under: Union Budget 2024–25’s youth skilling and employment package
• Employment linked incentive scheme Outlay: ₹99, 446 crore for 2 years
• Timeline : Covers jobs created between Aug 1, 2025 – July 31, 2027
• Total job creation target: 3.5 caror jobs between 1st August 2025 and 31st July 2027.
• Out of these, 1.92 Crore beneficiaries will be first timers, entering the workforce.

Key features of the Employment linked incentive scheme (ELI)

This scheme has two parts Part-A and Part-B.

Part -A : Incentive to 1st time employees

1. Eligibility: First time employees registered with EPFO and earning up to ₹1 lakh/ month.
2. Incentive amount: One month EPF wage (up to ₹15,000), distributed in 2 installments.  ((1st: After 6 months of continuous employment.   &  2nd : After 12 months, and successfully completed    financial literacy programme. ))
3. Saving provision: Part of incentive to be deposited in a Saving instrument with a lock- in period to promote saving habits.
4. Beneficiaries: 1.92 caror first time employees
5. Payment mechanism: Direct benefit transfer (DBT) using Aadhar bridge payment system (ABPS).

Part – B : Incentive for employers

1. Eligibility: EPFO (Employment’s Provident Fund Organisation) Registered establishment hiring. (A)least 2 additional employees                 (Workforce < 50 ).   &  (B) At least 5 additional employees (workforce>= 50 )
2. Incentive to employers : Upto ₹3000 per month for 2 years ( Extend to 4 years for manufacturing sector)
3. Minimum employment period : 6 months of sustained employment per new hire.
4. Salary capb: Employees earning up to ₹1 lakh/ month.
5. Job creation : ~ 2.6 caror additional jobs
6. Payment mechanism : Directly into their PAN- linked account.

Incentive Payment Mechanism for employment linked incentive scheme,

• All payments to the First Time Employees under Part A of the  Employment linked Incentive Scheme will be made through DBT (Direct Benefit Transfer) mode using Aadhar Bridge Payment System (ABPS).
• Payments to the Employers under Part B will be made directly into their PAN-linked Accounts.
• With the Employment linked incentive scheme (ELI) , The Government of India intends to catalyse job creation and Upskilling – reskilling in all sectors, particularly in the manufacturing sector, besides incentivizing youth joining the workforce for the first time.