Centre rolls out ELI scheme to create 3.5 crore jobs
Source: Chronicle News Service

Imphal, July 18 2025: In a major initiative aimed at boosting employment and strengthening the country's social security network, the Government of India has launched the Employment Linked Incentive (ELI) Scheme with a total outlay of Rs 99,446 crore.

The scheme, designed to generate over 3.5 crore new jobs, particularly in the manufacturing sector, will be implemented by the Ministry of Labour and Employment through the Employees' Provident Fund Organisation (EPFO) .

Speaking to media per sons, Regional Provident Fund Commissioner-II of the EPFO's Special State Office, Imphal, Angom Suren dra Singh informed that the scheme marks a significant step towards promoting formal employment while encouraging financial inclusion and economic stability.

He described the initiative as a transformative effort to support both workers and employers across the country.

The ELI Scheme has two components - Part A and Part B - targeting first-time employees and employers, respectively.

Under Part A, the scheme provides direct incentives to new employees earning up to Rs 1 lakh per month.

Eligible employees will receive a one-time incentive equivalent to one month's wage based on Basic Pay and Dearness Allowance, capped at Rs 15,000.The incentive will be released in two phases - up to Rs 7,500 after six months of continuous employment, and the remaining amount after completing 12 months of service, subject to successful completion of an online financial literacy programme available on the EPFO portal.

However, this component does not include any benefits for employers.

Part B focuses on incentivising employers for hiring additional workers.

Employers will receive up to Rs 3,000 per month per new employee for a period of two years, with the incentive period extended to four years for those operating in the manufacturing sector.

The incentive amount will vary depending on the wage slab of the new recruits: To qualify, establishments must demonstrate a net increase in employment, hiring at least two additional employees if the workforce is below 50, or no less than five if the number is 50 or more.

This increase must be sustained for at least six months.

The baseline for measuring additional employment will be calculated based on the average number of employees in the months or years leading up to August 1, 2025, depending on when the establishment was registered under EPFO .

Surendra said that the scheme is part of a broader effort to bring more workers under formal employment, ensure timely contributions to social security, and reward establishments that create stable job opportunities.

The ELI Scheme will be applicable to employment generated between August 1, 2025, and July 31, 2027 .

The regional commissioner encouraged employers and eligible workers to visit EPFO portal for detailed guidelines and registration and also advised those in Manipur to approach the EPFO's Special State Office at Keishampat Aheibam Leikai in Imphal West for assistance.

He expressed hope that the initiative would empower the labour force and help drive inclusive economic growth across the country.

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