Centre approves ELI Scheme to create 3.5 crore jobs
Source: Chronicle News Service

Imphal, July 04 2025: Employees' Provident Fund Organisation (EPFO), Special State Office (SSO), Imphal has informed that the Union Cabinet chaired by Prime Minister Narendra Modi on July 1 approved the Employment Linked Incentive (ELI) Scheme, with an outlay of Rs 1 lakh crore aimed at creating 3.5 crore additional jobs in the next two years.

As per a press release issued by EPFO, SSO, Imphal, the scheme will support employment generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector.

Under the scheme, while the first-time employees will get one month's wage up to Rs 15,000, the employer will be given incentives for a period of two years for generating additional employment, with extended benefits for another two years in the manufacturing sector.

The release continued that with an outlay of Rs 99,446 crore, the ELI Scheme aims to incentivise the creation of more than 3.5 crore jobs in the country over a period of two years.

Out of these, 1.92 crore beneficiaries will be the first timers, entering the workforce.

The benefits of the scheme would be applicable to jobs created between August 1 and July 31, 2027 .

The Scheme consists of two parts, with Part A focused on first timers and Part B focused on employers.

Targeting first time employees registered with EPFO, Part A will offer a one-month EPF wage up to Rs 15,000 in two instalments, with employees receiving salaries up to Rs 1 lakh eligible.

The first instalment will be payable after six months of service, and the second after 12 months of service and completion of a financial literacy programme by the employee.

To encourage the habit of saving, a portion of the incentive will be kept in a saving instrument of deposit account for a fixed period, which can be withdrawn at a later date.

The Part B support to employers will cover generation of additional employment in all sectors, with special focus on the manufacturing sector.

The employers will get incentives in respect to employees with salaries up to Rs 1 lakh.

The government will incentivise employers up to Rs 3,000 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 third and fourth years as well, it informed.

The release also stated that establishments, which are registered with EPFO, will be required to hire at least two additional employees (employers with less than 50 employees) or five additional employees (for employers with 50 or more employees), on a sustained basis for at least six month.

The incentive structure for EPF wage slab of Rs 10,000 of an additional employee, shall be Rs 1,000.For wage slab of Rs 10,000 to Rs 20,000 the incentive will be Rs 2,000 per employee while for an employee in a wage slab above Rs 20,000 and salary up to Rs 1 lakh, the incentive will be Rs 3,000 .

All payments to the first time employees under Part A of the Scheme will be made through the Direct Benefit Transfer (DBT) mode using the Aadhaar Bridge Payment System.

Payments to the employers under Part B will be made directly into their PAN-linked accounts, the statement added.

The release urged all the employers in the state to take full advantage of the scheme and help in generation of employment.

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