The Union Cabinet approved the Employment Linked Incentive (ELI) Scheme on July 1, 2025. Announced in Budget 2024–25, it aims to generate over 3.5 crore formal jobs by July 2027. With ₹1 lakh crore outlay, the scheme promotes job creation, especially in manufacturing, while strengthening social security for new workers.
BulletsIn
- ₹1 lakh crore ELI Scheme approved to create 3.5 crore jobs
- Applicable from Aug 1, 2025, to July 31, 2027
- Targets youth and first-time employees across all sectors
- ₹15,000 wage benefit in 2 parts for 1.92 crore EPFO-registered new hires
- Benefit split: after 6 months, then 12 months + training completion
- Employers get up to ₹3,000/month per new employee hired
- Minimum new hires: 2 for small firms, 5 for larger firms
- Incentives higher for manufacturing; extended up to 4 years
- All payments via Aadhaar-linked DBT or PAN-based transfers
- Aims to boost ‘Make in India’, formal jobs, and financial awareness
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