कृपया इसे हिंदी में पढ़ने के लिए यहाँ क्लिक करें
Here’s an in-depth news feature on the newly approved Employment Linked Incentive (ELI) Scheme—a major move by the Indian government to create jobs, empower youth, and uplift industries.
Quick Backstory
- Announced in Union Budget 2024–25 as part of a ₹2 lakh crore package focusing on employment and skill development.
- Gained final Cabinet approval on 1 July 2025, under PM Modi’s leadership .
Scheme Overview
- Total Outlay: ₹99,446 crore (~$11.7 billion).
- Timeline: Employment created between 1 Aug 2025 and 31 July 2027 qualifies.
- Job Target: Over 3.5 crore jobs, with ~1.92 crore first-time formal employees and ~2.60 crore jobs through employer incentives.
Dual-Component Structure
Part A – For First-Time Employees
- Must be EPFO-registered, salaried up to ₹1 lakh per month.
- Benefit: One month’s EPF wage (max ₹15,000) in two installments: after 6 months, then after 12 months + completion of financial literacy program.
- Savings Portition: A part of the incentive is fixed in a deposit to cultivate savings habits.
- Expect ~19.2 million beneficiaries.
Part B – For Employers
- Applies to EPFO-registered companies adding incremental employees and retaining them for ≥6 months.
- Hiring thresholds:
- Under 50 employees: +2 additional hires
- 50 or more: +5 hires.
- Incentive rates based on wage slab:
- ≤₹10,000: ₹1,000/month
- ₹10,001–20,000: ₹2,000/month
- ₹20,001–1 lakh: ₹3,000/month.
- Disbursement duration:
- 2 years across all sectors
- Extended to 4 years in manufacturing.
- Outcome: Projected to generate ~26 million new jobs.
Why It Matters
Empowering Youth & Formalization
- Encourages first-time job seekers to enter the formal workforce, offering social security.
- Financial literacy component builds long-term financial planning skills.
Boosting Industries
- Offers strong incentives for manufacturing, services, textiles, electronics, and more.
- For example, hiring 100 employees in non-manufacturing could fetch up to ₹72 lakh over two years; manufacturing firms stand to gain nearly ₹1.44 crore.
Economic Growth
- Helps tackle pressing urban youth unemployment: 17.9% urban, 13.7% rural (age 15–29).
- Adds upward momentum to India’s >8% GDP growth, yet lagging employment expansion .
Global Acclaim
- ILO praised the policy, noting how well-designed labor market incentives can boost youth employment outcomes.
Ground-Level Rollout
- EPFO regional offices (like Bhagalpur) are already ramping up awareness campaigns, explaining benefits to employers and youths.
- Payments via DBT/ABPS for employees and into PAN-linked accounts for employers.
Human Angle (with Warmth)
- Imagine Raja from a small town: lands his first job in electronics assembly, receives ₹7,500 after 6 months, then another ₹7,500 after a year—and learns to save. A ₹15k bonus? That’s festival cheer and phone charge-up!
Expert Views & Criticism
- Proponents say it’s a dual-incentive coup: supportive of youth and business growth, from voices like ILO.
- Critics, including some unions, warn: heavy subsidies might draw public funds, and employers shouldn’t hire just for money—not real need.
Key Takeaways
The Employment Linked Incentive (ELI) Scheme, approved by India’s Cabinet and effective from August 1, 2025 to July 31, 2027, allocates ₹99,446 crore to generate over 3.5 crore jobs. Under the plan, first-time formal job seekers registered with EPFO earning up to ₹1 lakh/month will receive a one-month EPF-linked wage subsidy (up to ₹15,000) in two installments—after 6 and 12 months, with the second installment released upon completing a financial literacy program—benefiting an estimated 1.92 crore individuals.
Simultaneously, EPFO-registered employers who hire additional staff (2+ hires for establishments with <50 employees, or 5+ for larger ones) and retain them for at least six months will receive monthly incentives of ₹1,000–₹3,000 per employee (based on wage levels), disbursed for two years across all sectors and extended to four years in manufacturing—spurring nearly 2.6 crore new jobs.
The scheme, financed via direct benefit transfers to employees (through Aadhaar-enabled EPFO) and employers (into PAN-linked accounts), aims to formalize employment, boost youth engagement, and reinforce social security in India’s growing labor market.
Social Message
“Everyone deserves dignity through stable work. The ELI Scheme is a step toward inclusive growth—helping youth step into a formal career and industries flourish through collective progress.”
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