About Employment Linked Incentive (ELI) Scheme:
- It will support employment generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector.
- The ELI Scheme was announced in the Union Budget 2024-25 as part of PM’s package of five schemes to facilitate employment, skilling and other opportunities for 4.1 Crore youth with a total budget outlay of Rs 2 Lakh Crore.
- It aims to incentivize the creation of more than 3.5 Crore jobs in the country, over a period of 2 years. Out of these, 1.92 Crore beneficiaries will be first timers, entering the workforce.
- Under the Scheme, while the first-time employees will get one month’s wage (up to Rs 15,000/-), the employers will be given incentives for a period of up to two years for generating additional employment, with extended benefits for another two years for the manufacturing sector.
- The benefits of the Scheme would be applicable to jobs created between 01st August 2025 and 31st July, 2027.
- The Scheme consists of two parts with Par A focused on first timers and Part B focused on employers:
- Part A: Incentive to First Time Employees:
- Targeting first-time employees registered with EPFO, this Part will offer one-month EPF wage up to Rs 15,000 in two installments. Employees with salaries up to Rs 1 lakh will be eligible.
- Part B: Support to Employers:
- This part will cover the generation of additional employment in all sectors, with a special focus on the manufacturing sector.
- The employers will get incentives in respect of employees with salaries up to Rs 1 lakh.
- The Government will incentivize employers, up to Rs 3000 per month, for two years, for each additional employee with sustained employment for at least six months.
- For the manufacturing sector, incentives will be extended to the 3rd and 4th years as well.
- All payments to the First Time Employees under Part A of the Scheme will be made through DBT (Direct Benefit Transfer) mode using Aadhaar Bridge Payment System (ABPS).
- Payments to the Employers under Part B will be made directly into their PAN-linked Accounts.
