Union Cabinet on Tuesday approved an Employment Linked Incentive (ELI) Scheme, designed to boost job creation and enhance social security across sectors, particularly in manufacturing. The ELI Scheme, announced in Union Budget 2024-25, is part of PM’s five-scheme package aimed at providing employment and skilling opportunities to 4.1 crore youth, with a total allocation of Rs 2 lakh crore. New employees shall receive one month’s salary (maximum Rs 15,000/-), whilst employers shall receive incentives for two years for creating additional jobs, with the manufacturing sector receiving extended benefits for two more years.
The ELI Scheme, allocated Rs 99,446 crore, targets to generate over 3.5 crore jobs nationwide within two years, according to the government release.Of these, 1.92 crore shall be first-time workforce entrants. The scheme benefits shall apply to positions created between August 1, 2025 and July 31, 2027. The initiative comprises two segments: Part A concentrating on first-time employees and Part B focusing on employers.
Part A: First-Time Employee Benefits: Part B: Employer Support Programme:
| EPF Wage Slabs of Additional Employee (in | Benefit to the Employer (per additional employment per month) |
| Up to Rs 10,000* | Upto Rs 1,000 |
| More than Rs 10,000 and up to Rs 20,000 | Rs 2,000 |
| More than Rs 20,000 (upto salary of Rs 1 Lakh/month) | Rs 3,000 |
*Employees with EPF wages up to Rs. 10,000 will get a proportional incentive.
ELI Payment Distribution System:All disbursements to First Time Employees under Part A of the Scheme shall be processed via DBT (Direct Benefit Transfer) utilising Aadhar Bridge Payment System (ABPS). For Employers under Part B, funds shall be transferred straight to their PAN-linked bank accounts.The ELI Scheme aims to stimulate employment generation across sectors, with special emphasis on manufacturing, whilst encouraging young individuals to enter the workforce. Additionally, the programme seeks to formalise the nation’s labour force by extending social security benefits to millions of young workers, both men and women.
- Agencies