DIMAPUR, JULY 18 (MExN): In a major initiative to generate employment and strengthen social security, the Government of India has launched the Employment Linked Incentive (ELI) Scheme with an outlay of Rs 99,446 crore.
Aimed at incentivising the creation of over 3.5 crore jobs across sectors, particularly manufacturing, the scheme will be implemented by the Ministry of Labour and Employment through the Employees' Provident Fund Organisation (EPFO), a press statement issued by Regional PF Commissioner-II Samuel Das informed on Friday.
The scheme comprises two key components — Part A and Part B.
Under Part A, incentives are offered to first-time employees. New employees will receive a one-time incentive equivalent to one month’s wages (Basic + DA) up to Rs 15,000, paid in two instalments. The first instalment, up to Rs 7,500, will be released after six months of continuous employment, while the second instalment will follow after 12 months and completion of an online financial literacy programme hosted on the EPFO portal.
Employees earning up to Rs 1 lakh per month are eligible under this component. However, no incentive is provided to employers under Part A.
Part B offers support for employers hiring additional workers. Establishments will receive a structured incentive of up to Rs 3,000 per month per additional employee for two years. For those in the manufacturing sector, this benefit extends to four years.
The incentive varies based on the wage slab of new employees. Employers must hire at least two additional employees (if their current strength is below 50) or five additional employees (if 50 or more), sustained over six months, to qualify. A baseline employment figure will be calculated based on the average number of employees over the past year or the months leading up to August 1, 2025, depending on the age of the establishment's EPFO registration.
"The goal is to bring more workers into the fold of formal employment, ensure timely contributions to social security, and reward those creating sustainable job opportunities," the statement said.
The ELI Scheme covers jobs created between August 1, 2025 and July 31, 2027. Employers and employees are encouraged to visit the EPFO portal or contact the Dimapur EPFO office for guidance and registration under the initiative.
