The government has launched a new scheme called the Employment Linked Incentive (ELI) Scheme. This plan is designed to help create more jobs, especially in the manufacturing sector, and to support both new workers and employers.
What is the ELI Scheme?
- The ELI Scheme is a government program that aims to increase formal jobs in India.
- It focuses on helping first-time employees and encouraging companies to hire more people.
- The scheme will be active for two years, from August 1, 2025, to July 31, 2027.
- The government has set aside a large budget for this scheme to make sure it reaches as many people as possible.
Key Features of the ELI Scheme
Support for First-Time Employees
- People who are joining the formal workforce for the first time can get special benefits.
- New employees will receive up to one month’s wage, with a maximum limit of ₹15,000.
- This amount is given in two parts:
- The first half after six months of continuous work.
- The second half after completing one year and attending a financial literacy session.
- The first half after six months of continuous work.
- The money will be sent directly to the employee’s bank account.
Benefits for Employers
- Employers who hire new workers will also get incentives.
- To qualify, companies must hire at least two extra workers (if they have less than 50 staff) or five extra workers (if they have 50 or more).
- These new hires must stay with the company for at least six months.
- Employers will receive incentives for two years for every new worker they keep.
- In the manufacturing sector, this benefit will continue for up to four years.
- The monthly incentive for employers depends on the salary of the new employee:
- Up to ₹10,000 salary: ₹1,000 per month
- ₹10,001 to ₹20,000 salary: ₹2,000 per month
- ₹20,001 to ₹1,00,000 salary: ₹3,000 per month
- Up to ₹10,000 salary: ₹1,000 per month
Who Can Benefit from the ELI Scheme?
- First-time workers: Those who have never had a formal job before.
- Employers: Especially those in manufacturing, but also in other sectors.
- Young people and the middle class: The scheme is designed to help these groups find stable jobs.
- Companies of all sizes: Both small and large companies can take part, as long as they meet the hiring requirements.
Main Goals of the ELI Scheme
- Create more jobs: The scheme aims to generate over 3.5 crore new jobs in two years.
- Support new workers: By giving a financial boost to first-time employees, the scheme helps them start their careers.
- Encourage companies to hire: By offering incentives, the government hopes companies will be more willing to take on new staff.
- Promote formal employment: The scheme encourages workers and companies to join the formal sector, which means better job security and social benefits.
- Focus on manufacturing: Special attention is given to manufacturing because it can create many jobs quickly.
How Does the Scheme Work?
- Employees must register with the Employees’ Provident Fund Organisation (EPFO).
- Employers and employees must meet certain requirements to get the benefits.
- Payments are made directly to bank accounts using secure government systems.
- The scheme covers jobs created between August 1, 2025, and July 31, 2027.
Why is the ELI Scheme Important?
- It helps reduce unemployment by making it easier for young people to find their first job.
- It supports companies in growing their workforce without extra financial stress.
- It brings more workers into the formal sector, giving them access to social security and other benefits.
- By focusing on manufacturing, it helps boost an important part of the economy.
The ELI Scheme is a big step towards creating more jobs, supporting new workers, and helping companies grow. With simple rules and direct benefits, it aims to make a real difference in the lives of many people across the country.
