- Employment Linked Incentive Scheme aims to create over 3.5 crore jobs in two years with Rs. 99,446 crore budget.
- First-time employees to get one month wage incentive up to Rs 15,000 in two installments.
- Employers rewarded up to Rs 3,000/month per new employee for two years, extended to four years for manufacturing sector.
Employment Linked Incentive (ELI) Scheme introduced by the Central Government focuses on boosting employment and social security across various sectors, with a special priority for the manufacturing industry. This scheme supports youth entering the workforce for the first time and rewards employers to increase their hiring with a long-term perspective.
Key Features and Benefits of Employment Linked Incentive Scheme 2025
Under ELI Scheme, the government plans to generate more than 3.5 crore new jobs for Indian youth between 1st August 2025 and 31st July 2027. The total outlay for this scheme is Rs 99,446 crore, which forms a major part of the Rs 2 lakh crore employment package announced in the Union Budget 2024-25.
Part A: Benefits for First-time Employees
- This part targets first-time job seekers who register with the Employees Provident Fund Organisation (EPFO).
- Eligible employees earning up to Rs 1 lakh per month will receive an incentive of one month’s wage up to Rs 15,000, paid in two parts.
- The first installment is given after 6 months of continuous employment, and the second after 12 months plus completion of a financial literacy program.
- A portion of these incentives will be deposited in a fixed-term savings account to encourage a habit of saving.
- Approximately 1.92 crore first-time beneficiaries will get this benefit.
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Part B: Incentives for Employers
- Employers hiring additional workers with salaries up to Rs 1 lakh per month will receive incentives based on wages.
- Incentive rates range from Rs 1,000 to Rs 3,000 per month for each new employee with a minimum 6-month sustained employment.
- Employers with less than 50 employees must hire at least 2 extra workers; those with 50 or more employees must add at least 5 workers to qualify.
- Manufacturing sector employers will get extended incentives for up to 4 years.
- Estimated to incentivize employment of nearly 2.6 crore additional workers.
Employer Incentive Table
| EPF Wage Slab of Additional Employee | Monthly Incentive to Employer |
|---|---|
| Up to Rs 10,000 | Up to Rs 1,000 (proportional) |
| Above Rs 10,000 to Rs 20,000 | Rs 2,000 |
| Above Rs 20,000 up to Rs 1 Lakh | Rs 3,000 |
How Incentive Payments Work
Incentives under Part A for first-time employees will be transferred directly to their bank accounts through Direct Benefit Transfer (DBT) using Aadhaar Bridge Payment System (ABPS). Employers will receive payments credited to their PAN-linked bank accounts for their hired employees’ incentives under Part B.
By combining financial benefits for both employees and employers, the Employment Linked Incentive Scheme aims not just to increase job availability but also formalize employment and expand social security coverage for millions across India.