The Employment Linked Incentive Scheme (ELI) was launched in Budget 2024-2025. It is introduced as a part of PM’s five prolonged strategies to promote employment and encourage 4.1 crore youth of the nation. The ELI scheme was officially approved on July 1st. Three separate ELI schemes were introduced under the 2024-2025 budget For the implementation of this scheme a total of Rs.2 lac crore has been allocated.
This scheme aims on boosting job creation and help economic growth. It’s one of the objective is promoting skill development and job opportunities. Under this scheme financial support will also be tied up with the job creation opportunities. These schemes are specially designed to enhance formal sector employment among youth. The ELI scheme is the central pillar of the employment agenda, to know more about this scheme read the further article.
Objective of Employment Linked Incentive Scheme
The main goal of Employment Linked Incentive Scheme is to provide financial assistance to both, the companies and the newly hired employees. Through this scheme the employers will receive financial incentives for two years straight for each job that they assist and create. It will be a total of four years of benefits because of the manufacturing sector that’ll get an additional two year of incentives. Talking about benefits, the employees will receive a one –time payment equivalent to one-month salary with will be upto Rs.15,000. For all this to come into implementation, the government has set a budget of Rs.99,446 crore.
This scheme aims to create over 3.5 crore new jobs in the market nationwide throughout the next 2 years. In which out of the total jobs, 1.92 crore jobs will be new hires. The good part about this scheme is it provides job nationwide and not restricting to any particular region or area. This scheme will support both economic growth through industries incentives and social welfare by aiding workers directly as part of that the jobs created between August 1,2025 and July 30,2025 will be qualified for the scheme benefits.
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Summary of Employment Linked Incentive Scheme 2025
| Name of scheme | Employment Linked Incentive Scheme |
| Launched by | Prime Minister of India in Budget |
| Objective | To increase employment rate of India |
| Benefits | Financial assistance |
| Beneficiaries | New employees and the companies |
| Year | 2025-27 |
| TApplication mode | Online /offline |
| Official website | EPFO website |
Employment Linked Incentive Scheme Part A
This scheme offers a one month EPF salary incentive, capped at Rs.15,000 for the new comers of EPFO. The payment structure is stretched as two installments- first installment is after 6 months and the second after 12 months of continuous dedicated employment. All the individuals are earning upto 1 lakh per annum are eligible for this scheme and take advantage. The scheme provide assistance in two installments however the second installment will be released only after completing financial literacy training. Part of the incentive received must be deposited in a savings account for a period of time to promote saving habits. This scheme is expected to benefit around 1.92crore new hires across the nation.
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Employment Linked Incentive Scheme Part B
ELI part B focuses on emphasizing job creation in the manufacturing sector along with supporting other industries. New hires by the employers who work continuously for atleast six months will give the chance to the employers to receive up to Rs.3,000 per month. This scheme is applicable for the employees who are earning up to Rs.1 lacs annually. Businesses who are EPFO registered are only eligible for this scheme. Incentives will be given for two years with the manufacturing sector who’ll receive extended incentives for the third and fourth years. Employers are required to hire at least two additional employees or five in large set ups with consistent employment for six months. While the manufacturing sector is being prioritized, the scheme will also support job creation across various sectors.
Financial Benefits
| EPF Wage Slabs of Additional Employee | Benefit to the employer (per additional employment per month) |
| Up to Rs 10,000 | Upto Rs.1,000 |
| More than Rs.10,000 and upto Rs.20,000 | Rs.2,000 |
| More than Rs.20,000(up to salary of Rs.1 lakh/ month) | Rs.3,000 |
Eligibility Criteria
- Applying candidates must be permanent resident of India
- Candidates must be employed by a corporation
- Recently hired staff members across all industries are also eligible for this scheme
- All the individuals who have recently joined and get a monthly pay of less than 1 lakh rupees and are enrolled in EPFO are eligible.
Required Documents
- Mobile number
- Email address
- PAN card
- Aadhaar card
- Contact details
- Address details
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Salient Features
- The main purpose of this scheme is to formalize employment by offering financial support to both employers and newly hired workers
- Employers are rewarded for job creation over two years while new employees can receive upt Rs.15,000.
- The manufacturing sector has given the opportunity to enjoy an extended incentive period of four years in total.
Employment Linked Incentive Scheme Apply Online 2025
- First visit the official EPFO website.
- At the home page locate and click on the Apply Online option from the online service option.
- Fill all the required details and attach all the necessary documents.
- Make sure you fill all the details carefully
- Click on the submit option to complete the application process.
Payment Method Under ELI Scheme
- In the Part A of the scheme, all payments to the first-time employees will be processed via Aadhar Bridge Payment System (ABPS) under the DBT (Direct Benefit Transfer) method.
- In the Part B, all the payment to the employers will be made straight into their PAND-Linked accounts.
FAQs
What is the Employment Linked Incentive Scheme(ELI)?
it is a government program unveiled in budget 2024-2025
what are the benefits of this new initiative?
This scheme has been formedwith the aim to provide financial assistance to both the companies and the new hires.