Employment Linked Incentive (ELI) Scheme, announced as part of the Union Budget 2024–25, offers substantial financial incentives to both employers and first-time employees, with the goal of generating 3.5 crore new jobs between 1st August 2025 to 31st July 2027.
Key Highlights of the ELI Scheme
Incentives to First-Time Employees (Part A)
- Applicable to new employees joining the workforce and registered with EPFO.
- One month’s wage (up to ₹15,000) to be provided in two instalments:
- 1st instalment after 6 months of continuous service.
- 2nd instalment after 12 months + completion of a financial literacy module.
- A portion of this incentive will be held in a savings instrument for later withdrawal.
Incentives to Employers (Part B)
- Employers hiring additional workforce (beyond existing headcount as of 31 July 2025) will receive:
- ₹1,000 per month for new hires with EPF wage ≤ ₹10,000
- ₹2,000 per month for wages between ₹10,001–₹20,000
- ₹3,000 per month for wages between ₹20,001–₹1,00,000
- Duration: 2 years for all sectors, extended to 4 years for manufacturing sector.
- Eligibility: Hire at least:
- 2 additional employees (if current staff < 50), or
- 5 additional employees (if current staff ≥ 50), retained for at least 6 months.