🟡 Employment Linked Incentive (ELI) Scheme – 2025:
Announced by: Union Cabinet on 1st July 2025
Total Outlay: ₹99,446 Crore
Duration: 1st August 2025 to 31st July 2027
Target: Generate over 3.5 crore jobs in 2 years
Beneficiaries: Part of PM’s ₹2 lakh crore employment package for 4.1 crore youth
Objective: Create large-scale employment opportunities, Improve the employability of youth, expand social security coverage, give special focus to the manufacturing sector
New Delhi,
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Employment Linked Incentive (ELI) Scheme aimed at boosting employment generation, enhancing employability, and expanding social security across all sectors—especially in the manufacturing industry.
The scheme, which was first announced in the Union Budget 2024–25, is part of a broader ₹2 lakh crore package focused on youth employment, skill development, and economic opportunities for 4.1 crore youth.
Key Features of the Scheme
With a total budget outlay of ₹99,446 crore, the ELI Scheme aims to create over 3.5 crore jobs in two years, from 1st August 2025 to 31st July 2027. It will also benefit 1.92 crore first-time employees entering the formal workforce.
The scheme has two parts:
Part A: Incentives for First-Time Employees
- First-time employees registered under the EPFO (Employees’ Provident Fund Organisation) will receive one month’s EPF wage (up to ₹15,000) in two installments.
- The first installment will be given after 6 months of continuous employment.
- The second installment will be given after 12 months, along with completion of a financial literacy programme.
- Salaried employees earning up to ₹1 lakh per month are eligible.
- A portion of the incentive will be deposited in a savings instrument to promote long-term saving habits.
Part B: Incentives for Employers
- Employers registered with EPFO will receive incentives of up to ₹3,000 per employee per month for hiring new employees.
- These employees must stay on the job for at least 6 months.
- Companies with fewer than 50 employees must hire at least 2 additional employees, while those with 50 or more must hire at least 5 to qualify.
- The manufacturing sector will receive extended benefits for an additional 2 years (total 4 years).
Monthly Incentive Based on EPF Wage:
This part of the scheme is expected to generate 2.60 crore additional jobs through employer incentives.
Payment Mechanism
Incentives for employees (Part A) will be paid via Direct Benefit Transfer (DBT) using the Aadhaar-based payment system (ABPS).
Incentives for employers (Part B) will be deposited directly into PAN-linked accounts.
Goals of the Scheme
The ELI Scheme is designed to:
- Encourage youth participation in the workforce
- Support employers in job creation
- Strengthen formal employment through EPFO registration
- Promote financial literacy and savings
- Give special focus to the manufacturing sector
The Cabinet’s approval of the ELI Scheme marks a major step toward employment generation and economic empowerment for India’s youth, with a strong push for workforce formalization and social security.
