{"id":341860,"date":"2025-07-02T17:49:56","date_gmt":"2025-07-02T12:19:56","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=341860"},"modified":"2025-07-02T17:49:56","modified_gmt":"2025-07-02T12:19:56","slug":"employment-linked-incentive-eli-scheme","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/employment-linked-incentive-eli-scheme\/","title":{"rendered":"Employment-Linked Incentive (ELI) Scheme"},"content":{"rendered":"<p><strong>News:<\/strong> The Union Cabinet approves Employment-Linked Incentive scheme with an allocation of \u20b999,446 crore to support employment generation.<\/p>\n<h2>About Employment-Linked Incentive (ELI) Scheme<\/h2>\n<figure id=\"attachment_341861\" aria-describedby=\"caption-attachment-341861\" style=\"width: 382px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-341861\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/07\/Source-Labour-Ministry.png?resize=382%2C382&#038;ssl=1\" alt=\"\" width=\"382\" height=\"382\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/07\/Source-Labour-Ministry.png?resize=300%2C300&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/07\/Source-Labour-Ministry.png?resize=150%2C150&amp;ssl=1 150w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/07\/Source-Labour-Ministry.png?resize=768%2C771&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/07\/Source-Labour-Ministry.png?w=840&amp;ssl=1 840w\" sizes=\"auto, (max-width: 382px) 100vw, 382px\" \/><figcaption id=\"caption-attachment-341861\" class=\"wp-caption-text\"><strong>Source &#8211; Labour Ministry<\/strong><\/figcaption><\/figure>\n<ul>\n<li>The ELI scheme is an innovative initiative by the Indian government intended at <strong>addressing the country\u2019s increasing employment challenges.<\/strong><\/li>\n<li>The scheme <strong>aims<\/strong> to support <strong>employment generation, enhance employability and social security<\/strong> across all sectors, with special focus on the <strong>manufacturing sector<\/strong>.<\/li>\n<li><strong>Objective:<\/strong> The Scheme aims to incentivize the creation of <strong>more than 3.5 Crore jobs<\/strong> in the country, over a <strong>period of 2 years<\/strong>.<\/li>\n<li><strong>Timespan:<\/strong> The benefits of the Scheme would be applicable to jobs created between <strong>01st August 2025 and 31st July, 2027.<\/strong><\/li>\n<li><strong>Background:<\/strong> The Scheme was announced in the <strong>Union Budget 2024-25<\/strong> as part of <strong>PM\u2019s package of five schemes to facilitate employment<\/strong>, skilling and other opportunities for <strong>1 Crore youth with a total budget outlay of Rs. 2 Lakh Crore. <\/strong><\/li>\n<\/ul>\n<p><strong>Components:<\/strong> The Scheme consists of <strong>two parts<\/strong> which are:<\/p>\n<ul>\n<li><strong>Part A: Incentive to First Time Employees:<\/strong>\n<ul>\n<li><strong>Target beneficiaries: This part targets first-time employees<\/strong> registered with EPFO.<\/li>\n<li>It will offer <strong>one-month EPF wage up to Rs 15,000 in two installments<\/strong>.\n<ul>\n<li>The <strong>1st installment<\/strong> will be <strong>payable after 6 months<\/strong> of service and the <strong>2nd installment<\/strong> will be payable <strong>after 12 months<\/strong> of service and completion of a <strong>financial literacy programme<\/strong> by the employee.<\/li>\n<\/ul>\n<\/li>\n<li>Employees with <strong>salaries up to Rs. 1 lakh<\/strong> will be eligible.<\/li>\n<li><strong>Saving:<\/strong> To encourage the <strong>habit of saving<\/strong>, a portion of the incentive will be kept in a <strong>savings instrument of deposit account<\/strong> for a <strong>fixed period<\/strong> and can be withdrawn by the employee at a later date.<\/li>\n<li>The Part A will <strong>benefit around 1.92 crore first time employees.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Part B: Support to Employers:<\/strong>\n<ul>\n<li><strong>Target sectors:<\/strong> This part will <strong>cover generation of additional employment<\/strong> in all sectors, with a <strong>special focus on the manufacturing sector.<\/strong><\/li>\n<li><strong>Incentives to employers:<\/strong> The <strong>employers<\/strong> will get <strong>incentives<\/strong> in respect of <strong>employees with salaries up to Rs 1 lakh<\/strong>.<\/li>\n<li>The Government will incentivize employers, <strong>up to Rs 3000 per month<\/strong>, for <strong>two years<\/strong>, for each <strong>additional employee with sustained employment for at least six months.<\/strong><\/li>\n<li>For the <strong>manufacturing sector<\/strong>, incentives will be extended to the <strong>3rd and 4th years<\/strong> as well.<\/li>\n<li><strong>Conditions:<\/strong> Establishments, which are registered with EPFO, will be required to <strong>hire at least two additional employees <\/strong>(for employers with less than 50 employees) or <strong>five additional employees<\/strong> (for employers with 50 or more employees), on a sustained basis for at least six months.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><strong>Incentive Payment Mechanism:<\/strong>\n<ul>\n<li><strong>For Part A:<\/strong> All payments to the <strong>First Time Employees<\/strong> under Part A of the Scheme will be made through <strong>DBT (Direct Benefit Transfer)<\/strong> mode using Aadhar Bridge Payment System (ABPS).<\/li>\n<li><strong>For Part B:<\/strong> <strong>Payments to the Employers<\/strong> under Part B will be made directly into their <strong>PAN-linked Accounts<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Union Cabinet approves Employment-Linked Incentive scheme with an allocation of \u20b999,446 crore to support employment generation. About Employment-Linked Incentive (ELI) Scheme The ELI scheme is an innovative initiative by the Indian government intended at addressing the country\u2019s increasing employment challenges. The scheme aims to support employment generation, enhance employability and social security across&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/employment-linked-incentive-eli-scheme\/\">Continue reading <span class=\"screen-reader-text\">Employment-Linked Incentive (ELI) Scheme<\/span><\/a><\/p>\n","protected":false},"author":10393,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,956,12039],"tags":[11872],"class_list":["post-341860","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-schemes-and-programs","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/341860","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10393"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=341860"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/341860\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=341860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=341860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=341860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}