North News
New Delhi, July 1
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Employment Linked Incentive (ELI) scheme aimed at boosting job creation, particularly in the manufacturing sector, and extending social security to first-time workers across the country. The scheme, announced in the Union Budget 2024–25 as part of a broader ₹2 lakh crore employment package, is designed to support over 3.5 crore jobs over two years, with 1.92 crore roles earmarked for first-time workers. It carries a financial outlay of ₹99,446 crore and will cover jobs generated between August 1, 2025 and July 31, 2027.
Under the ELI scheme, new employees registered with the Employees’ Provident Fund Organisation (EPFO) and earning up to ₹1 lakh per month will be eligible for a one-month EPF wage incentive up to ₹15,000, disbursed in two installments. The first installment will be issued after six months of continuous employment, and the second after twelve months, contingent on completing a financial literacy programme. A portion of the incentive will be placed in a savings instrument to promote long-term saving habits.
Employers, meanwhile, will be incentivised with up to ₹3,000 per employee per month for hiring additional staff who remain in sustained employment for at least six months. This incentive will last two years across all sectors, with a further two-year extension for the manufacturing sector.
To qualify, companies registered with EPFO must hire at least two additional workers (if the workforce is under 50) or five additional workers (if the workforce is 50 or more). Officials said the dual-part scheme will not only generate employment but also strengthen formalisation in the labour market.
The government said the initiative aims to integrate youth into the formal economy and improve both job quality and worker protections. It is one of five employment-focused programmes under the current budget.
