Date: July 1, 2025
The Union Cabinet has approved the Employment‑Linked Incentive (ELI) Scheme to boost formal job creation and incentivize hiring in India.
🎯 Key Highlights
- Total outlay: ₹99,446 crore
- Target jobs: 3.5 crore (35 million) jobs in 2 years
- Implementation period: August 1, 2025 – July 31, 2027
🧩 Scheme Components
📌 Part A – Benefits for First-Time Employees
- Eligible for employees joining EPFO for the first time
- Monthly salary ≤ ₹1 lakh
- Incentive: One month’s EPF wage (max ₹15,000)
- Paid in 2 installments – after 6 and 12 months
- A mandatory savings element to promote financial discipline
- An estimated 1.92 crore first-time workers are to benefit
📌 Part B – Benefits for Employers
- Incentive: ₹1,000–₹3,000/month per new EPFO-enrolled employee
- Applicable to employees with a salary ≤ ₹1 lakh
- Minimum new hires: 2 (if <50 employees) or 5 (if ≥50 employees)
- Incentive duration: 2 years (4 years for the manufacturing sector)
💳 Payment Mode
- Employees: Via Direct Benefit Transfer (DBT) using Aadhaar-enabled system
- Employers: Credited to PAN-linked business bank accounts
📊 Summary Table
| Component | Target Group | Incentive Value | Duration |
|---|---|---|---|
| Part A (Employees) | First-time EPFO entrants | Up to ₹15,000 (in 2 installments) | 12 months |
| Part B (Employers) | Firms hiring new workers | ₹1k–₹3k/month per employee | 2 years (4 for manufacturing) |
📌 Conclusion
This scheme is a major boost to formal job creation, particularly benefiting youth and MSMEs. It aligns with India's goal of enhancing social security, increasing EPFO coverage, and incentivizing businesses to expand their workforce.