The central government on Tuesday approved an Employment Linked Incentive scheme with a budget of ₹1.07 lakh crore, aiming to generate 3.5 crore jobs over the next two years through social security initiatives managed by the EPFO.
The Employment Linked Incentive (ELI) scheme, aimed at boosting job creation, improving employability, and strengthening social security across all sectors, especially manufacturing, was approved by the Union Cabinet during a meeting chaired by Prime Minister Narendra Modi, according to Information & Broadcasting Minister Ashwini Vaishnaw. The scheme targets the creation of over 3.5 crore jobs in the country within two years, an official statement noted.
Employees earning up to ₹1 lakh per month will qualify for the incentive under this scheme.Under the scheme, first-time employees will be eligible for one month’s wages, capped at ₹15,000, while employers can receive incentives for up to two years, extended by another two years for roles in the manufacturing sector. These benefits will cover jobs created between August 1, 2025, and July 31, 2027. The first installment will be released after six months of employment, while the second will be provided after 12 months of service and successful completion of a financial literacy program by the employee.
The initiative was initially introduced in the Union Budget 2024–25 as part of the Prime Minister’s five youth-oriented programs to promote employment, skill development, and related opportunities for 4.1 crore youth, with a total allocation of ₹2 lakh crore.