Last Updated:
First-time employees need to employ in an EPFO-registered entity and need to have activate UAN number linked with Aadhaar for Direct Bank Transfer (DBT).
Govt approves Employee-Linked Incentive Scheme.
The Union Cabinet chaired by Prime Minister Narendra Modi on Tuesday approved the Employment Linked Incentive (ELI) Scheme to boost job creation, enhance employability and expand social security across sectors, with a special push for manufacturing.
The ELI Scheme was announced in the Union Budget 2024–25 as part of the Prime Minister’s five-scheme package aimed at facilitating employment, skilling and economic opportunities for 4.1 crore youth. The combined budget outlay for these initiatives stands at Rs 2 lakh crore.
The scheme will run between August 01, 2025 to July 31, 2027, aimed at the creation of 3.5 crore jobs.
Read More: How To Activate EPFO UAN Using Aadhaar OTP? Here’s A Step-By-Step Guide
What Is The ELI Scheme?
The scheme has two parts:
Part A – Benefit for First-Time Employees
If you’re getting a job for the first time and are registered with EPFO:
You can get up to Rs 15,000 as an incentive in two parts. You will get Rs 7,500 after 6 months of working with a registered EPFO employer and the rest amount of Rs 7,500 after 12 months. You need to complete a basic financial course before you receive the amount.
Read More: How To Link Aadhaar To Bank Account Online
Part B – Benefit For Employers Hiring New People
Companies will get monthly rewards for hiring new employees and keeping them for at least 6 months.
Monthly Incentives for Each New Hire:
Salary up to Rs 10,000 → Company gets Rs 1,000/month
Salary Rs 10,001–20,000 → Company gets Rs 2,000/month
Salary Rs 20,001–1,00,000 → Company gets Rs 3,000/month
For the manufacturing sector, the benefit continues for 4 years instead of 2.
How You Can Avail The Benefits?
First-time employees need to employ in an EPFO-registered entity and need to have activate UAN number linked with Aadhaar for Direct Bank Transfer (DBT).
How to Apply For ELI Scheme?
- Maintain EPFO records properly (new employee details, wages, etc.)
- File regular EPF returns
- Submit employee retention proof (after 6 months)
- Government will transfer the incentive to your PAN-linked business account
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
- First Published:
