{"id":173822,"date":"2025-07-02T13:23:26","date_gmt":"2025-07-02T07:53:26","guid":{"rendered":"https:\/\/www.gkseries.com\/blog\/?p=173822"},"modified":"2025-07-02T13:23:28","modified_gmt":"2025-07-02T07:53:28","slug":"cabinet-approves-employment-linked-incentive-eli-scheme-to-create-3-5-cr-jobs","status":"publish","type":"post","link":"https:\/\/www.gkseries.com\/blog\/cabinet-approves-employment-linked-incentive-eli-scheme-to-create-3-5-cr-jobs\/","title":{"rendered":"Cabinet Approves Employment Linked Incentive (ELI) Scheme to create 3.5 cr jobs"},"content":{"rendered":"\n<p>In a landmark employment-centred reform, the Union Cabinet headed by Prime Minister Narendra Modi has approved the almost \u20b9 1 lakh crore&nbsp; Employment Linked Incentive (ELI) Scheme, which aims to create more than 3.5 crore jobs across sectors, especially in manufacturing.&nbsp; The ELI Scheme aims to encourage new employment on the first-time employee level and on employers, support new job creation and better social security without the risks; to Indias young workforce.<\/p>\n\n\n\n<p>Why in News?<\/p>\n\n\n\n<p>The ELI Scheme was announced during the Union Budget 2024-25 and approved by the Cabinet on July 1, 2025.&nbsp; The ELI Scheme will be know as package or plan part of a wider employment and skilling related package, a sum of \u20b9 2 lakh crore worth of employment initiative designed to address the challenges of unemployment, formalisation of employment, and accessment of new employability for youth, mostly in a whole new post-pandemic world!&nbsp; The planned job creation from this program is from August 1, 2025 to July 31, 2027.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Aim &amp; Objectives<\/h3>\n\n\n\n<p>\u2022 Formal job creation of 3.5 crores in over 2 years.<\/p>\n\n\n\n<p>\u2022 Encouraging every type employment, especially, manufacturing.<\/p>\n\n\n\n<p>\u2022 Create value for first-time employees and employers.<\/p>\n\n\n\n<p>\u2022 Create more social security registered relatives through EPFO.<\/p>\n\n\n\n<p>\u2022 Improvement of youth in finilal literacy and savings culture.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Structure of the ELI Scheme<\/h3>\n\n\n\n<p><strong>Part A- Incentives to First-Time Employees<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Beneficiaries: 1.92 crore new workers registered with EPFO.<\/li>\n\n\n\n<li>Benefit: One-month wage up to \u20b915,000 in two parts:<\/li>\n\n\n\n<li>First part after 6 months of service.<\/li>\n\n\n\n<li>Second part after 12 months of service + completion of financial literacy training.<\/li>\n\n\n\n<li>Eligibility: Salary up to \u20b91 lakh\/month.<\/li>\n\n\n\n<li>Percentage of incentive will be locked into savings instruments and leave the balance for future who withdraw.<\/li>\n<\/ul>\n\n\n\n<p><strong>Part B- Assistance to Employers<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All sectors covered but with extra benefits for manufacturing.<\/li>\n\n\n\n<li>Incentives to employers who hire additional employees and with sustained employment of 6 months.<\/li>\n\n\n\n<li>Available only for employers registered with EPFO.<\/li>\n<\/ul>\n\n\n\n<p>Minimum new hires are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>2 employees for (&lt;50 employee) firms<\/li>\n\n\n\n<li>5 employees for (\u226550 employee) firms<\/li>\n<\/ul>\n\n\n\n<p>Employer Incentives,<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employee\u2019s EPF Wage Slab Employers Incentive\/Month<\/li>\n\n\n\n<li>Up to \u20b910,000 Up to \u20b91,000<\/li>\n\n\n\n<li>\u20b910,001 \u2013 \u20b920,000 \u20b92,000<\/li>\n\n\n\n<li>\u20b920,001 \u2013 \u20b91,00,000 \u20b93,000<\/li>\n\n\n\n<li>Incentives for employers and extended employment period in the 3rd and 4th years for employees in manufacturing.<\/li>\n<\/ul>\n\n\n\n<p>Payment Mechanism<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Part A: Payments via DBT through Aadhar Bridge Payment System.<\/li>\n\n\n\n<li>Part B: Payments made into employers PAN linked accounts.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>In a landmark employment-centred reform, the Union Cabinet headed by Prime Minister Narendra Modi has approved the almost \u20b9 1 lakh crore&nbsp; Employment Linked Incentive (ELI) Scheme, which aims to create more than 3.5 crore jobs across sectors, especially in manufacturing.&nbsp; The ELI Scheme aims to encourage new employment on the first-time employee level and [&hellip;]<\/p>\n","protected":false},"author":419,"featured_media":173828,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[5374],"tags":[60],"class_list":["post-173822","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-july-2025","tag-government-schemes-current-affairs"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/173822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/419"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=173822"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/173822\/revisions"}],"predecessor-version":[{"id":173829,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/173822\/revisions\/173829"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/173828"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=173822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=173822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=173822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}