Govt Approves Employment Linked Inventive Scheme
There is a great news for the youth and middle class of the country. The Employment Linked Incentive (ELI) scheme has been approved in a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi on Tuesday, 1 July 2025. The aim of this scheme is to promote jobs in the country and especially to strengthen the manufacturing sector. According to a news of Mint, the government has also kept a huge budget of Rs 1.07 lakh crore for this scheme. So come, let’s know what is this ELI scheme and who will get the benefit of it.
What is ELI Scheme?
Employment Linked Incentive (ELI) scheme is an initiative of the government through which efforts are being made to increase jobs in the formal sector (formal sector) in the country. The biggest focus of this scheme is to prepare the youth for jobs and support them financially. Especially, this scheme is a big step towards strengthening the manufacturing sector. The government claims that through this scheme, more than 3.5 crore jobs will be created by next year, of which 1.92 crores will be the first job youth. This scheme will give new strength to campaigns like ‘Make in India’ and will speed up the country’s economy.
Who will take advantage?
ELI scheme will benefit those youth who are stepping into the job world for the first time. If you are registering in the Employees Provident Fund Organization (EPFO) for the first time, then the government will give you financial assistance of one month salary, ie a maximum of Rs 15,000. But this money will not be available simultaneously, but will come to your account in two installments. The first installment will be available after completion of 6 months of job and the second installment will be available after taking part in 12 months job and financial literacy program. Some part of this amount will also be deposited in FD account, which you can withdraw later. However, the benefit of this scheme will be available only to those employees whose monthly salary is 1 lakh rupees or less. That is, if your salary is more than this, then you will not come under the purview of this scheme.
What will companies get?
The ELI scheme is not only for the employees, but also for the job companies. The government will give economic incentives to those companies that will hire new employees. If a company is registered in EPFO and it keeps new employees, then it will get help up to Rs 3,000 per month on every new employee. This incentive amount will be given for two years. But there are some conditions for this.
- Companies that have less than 50 employees have to keep at least 2 new employees.
- Companies that have 50 or more employees will have to keep at least 5 new employees.
- The employee will have to stay in the job for at least 6 months, so that the company can get this incentive.
Announcement was in budget, now approval was received
The ELI scheme was mentioned by the government in the last budget. This scheme is part of the Prime Minister’s 2 lakh crore rupees of mega package, which aims to give jobs, training and other opportunities to crores of youth. Now after getting approval from the Union Cabinet, the process of implementing this scheme will start soon. The government’s effort is to reach every corner of the country, especially the youth of small cities and rural areas.
How and when will you get money?
Under the ELI scheme, the amount of Rs 15,000 to the youth working for the first time will be given in two parts. You will get the first installment when you complete the 6 -month job. The second installment will be found after completing 12 months of jobs and participating in the government’s financial literacy program. A part of this amount will be deposited in your FD account, which you can withdraw later. This arrangement has been made so that the youth get financial help in the early days of the job and they can also save to secure their future. Companies will also get incentive amount every month, but for this it is necessary for the employee to work for at least 6 months. If the employee leaves the job in the middle, then the company will not get his encouragement.