- EPFO’s Employment Linked Incentive Scheme has a Rs.99,446 crore budget to create 3.5 crore new jobs across the country from August 2025 to July 2027.
- The scheme offers wage incentives up to Rs.15,000 for eligible first-time job entrants and encourages long-term savings through fixed account deposits.
- Focus on youth employment and social security expansion especially in the Northeast, with government backing and easy employer enrollment.
Employees’ Provident Fund Organization (EPFO) recently started the Employment Linked Incentive Scheme, aiming to create millions of job opportunities and improve social security across the country. With a big budget of Rs.99,446 crore, this scheme targets first-time job entrants, especially young people, to encourage employment between August 2025 and July 2027. If you are an employer or someone new to the workforce, knowing about this scheme could be very helpful.
Who Can Benefit from the Employment Linked Incentive Scheme?
This scheme mainly helps first-time job entrants who join the workforce from August 1, 2025, to July 31, 2027. Young people from various sectors and employers hiring them will benefit the most. Any new employee earning up to Rs.1 lakh per month and registered with EPFO qualifies, making it very inclusive. The scheme supports employers by giving financial incentives that reduce the cost of hiring and keeping employees.
Key Features and Benefits of the ELI Scheme
The scheme offers a wage-linked incentive of up to Rs.15,000 per employee, given in two installments. The first payment comes after six months of continuous employment, encouraging stable jobs. The second payment follows after twelve months, as long as the employee finishes a required financial literacy program. This setup not only increases income but also helps new employees build good financial habits.
How the Scheme Encourages Long-Term Savings and Social Security
To support long-term financial security, part of the wage incentive is put into a fixed account for the employee. This encourages saving and improves social security coverage. By linking incentives to EPFO registration and financial education, the scheme helps new employees become part of the national social security system step by step.
Steps for Employers to Enroll and Avail Benefits
Employers can easily sign up for the Employment Linked Incentive Scheme through the official EPFO website. Registration requires submitting the necessary employee details and making sure salaries do not go beyond the Rs.1 lakh monthly limit. Once registered, employers can claim benefits gradually based on how long the employee stays and finishes the financial literacy program. This simple process helps maximize incentives and supports workforce growth.
Impact and Vision: Job Creation Targets and Economic Growth
The scheme aims to create over 3.5 crore jobs nationwide in two years, with a major focus on 1.92 crore jobs for first-time workers. Special attention is given to the Northeast region to promote balanced economic growth. By increasing employment and social security coverage, this plan sets a strong base for ongoing economic progress.
Government Support and Policy Framework
Recently approved by the Union Cabinet led by Prime Minister Shri Narendra Modi, the scheme is part of the Union Budget 2024–25 plans. It fits into a bigger Rs.2 lakh crore package focusing on employment, skill development, and chances for over 4.1 crore young people. Such strong government support promises long-term commitment and resource availability.
Employers and employees interested in joining can visit the official EPFO website for detailed information and how to enroll.