In a landmark move to transform India’s job market, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Employment Linked Incentive (ELI) Scheme—a high-impact initiative aimed at creating over 3.5 crore new jobs in just two years. With a massive outlay of ₹99,446 crore, the scheme is a major stride toward employment generation, youth empowerment, and formal workforce integration across sectors, with special emphasis on manufacturing.
🎯 Key Objectives of the ELI Scheme
- ✔️ Encourage first-time employment by offering direct wage support
- ✔️ Boost job creation across industries, especially in manufacturing
- ✔️ Provide social security by bringing more workers under EPFO coverage
- ✔️ Incentivize employers to sustain and expand workforce
- ✔️ Formalize employment through direct DBT and structured savings
👩💼 Part A: Incentives for First-Time Employees
This part focuses on youth entering the workforce for the very first time, registered under the EPFO (Employees’ Provident Fund Organisation). Here’s how it helps:
- 💰 Incentive: One month’s wage up to ₹15,000, paid in two installments
- 1st installment after 6 months of service
- 2nd installment after 12 months + Financial Literacy Program
- 💡 Part of the incentive will be locked in a savings deposit account to encourage long-term financial planning
- 🎯 Target: 1.92 crore first-time job seekers to benefit
🏢 Part B: Incentives for Employers
Designed to reward job creators, especially in the manufacturing sector, Part B supports employers who hire additional employees and maintain employment for at least six months.
🔧 Incentive Structure (Per New Employee/Month)
| EPF Wage Slab | Incentive Amount |
|---|---|
| Up to ₹10,000 | ₹1,000* |
| ₹10,001 – ₹20,000 | ₹2,000 |
| ₹20,001 – ₹1,00,000 | ₹3,000 |
*Employees earning under ₹10,000 will get proportional benefits.
👥 Hiring Threshold:
- 🏢 Employers with < 50 workers: Hire minimum 2 new employees
- 🏭 Employers with ≥ 50 workers: Hire minimum 5 new employees
📌 Manufacturing sector will enjoy extended incentives for four years, compared to two years for other sectors.
📈 Target: 2.60 crore additional job creations by incentivizing employers
💡 How the Incentives Will Be Paid
- ✅ First-time employees will receive payments via DBT (Direct Benefit Transfer) using Aadhaar-enabled systems
- ✅ Employers will receive incentives directly in PAN-linked accounts
🔄 Formal Workforce Transformation
Beyond job numbers, the ELI Scheme is expected to have transformative impacts:
- 🔐 Expand social security to crores of informal workers
- 💼 Bring transparency and structure to hiring practices
- 📊 Boost India’s manufacturing strength and job sustainability
- 🧑🎓 Empower the youth with financial literacy and security
🚀 Final Word: A Job Revolution in the Making
With the ELI Scheme, the Indian government is not just offering financial incentives—it is redefining the employment landscape by making job creation a shared national mission. As India moves toward its $5 trillion economy goal, this initiative is a timely catalyst for economic growth, youth development, and formal workforce expansion.
🔔 Stay tuned to our blog for regular updates on how to register, apply, and benefit from the ELI Scheme!
