A government program called the Employment Linked Incentive (ELI) Scheme was unveiled in Budget 2024–2025 and was approved on July 1st to promote job creation and strengthen the economy. With a total budget allocation of ₹2 lakh crore, the ELI scheme was introduced in the Union Budget 2024–25. As part of the PM’s package of five initiatives to help 4.1 crore youngsters find work, develop their skills, and have other possibilities. Three Employment Linked Incentive Scheme have been introduced in the Budget 2024 to increase hiring and employment in the formal sector. Keep reading this article to know more about the schemes and how to apply for them.
Objective of Employment Linked Incentive Scheme
The primary objective of Employment Linked Incentive Scheme is to provide financial assistance to the companies and new employees. Employers will earn incentives for two years for adding employment, while the manufacturing sector would enjoy extended advantages for two more years. New hires will receive one month’s pay, up to a maximum of Rs 15,000. According to a government announcement, the ELI Scheme, which has been granted Rs 99,446 crore, aims to create over 3.5 crore employment nationally in the next two years. A total of 1.92 crore of them will be new hires. Positions formed between August 1, 2025, and July 31, 2027, will be eligible for the program benefits.
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Helpful Summary of Employment Linked Incentive Scheme
| Name of the scheme | Employment Linked Incentive Scheme |
| Launched by | Prime Minister of India in Budget |
| Objective | To increase employment in India |
| Benefits | Financial assistance |
| Beneficiaries | New Employees and companies |
| Year | 2025-27 |
| Application mode | Online offline |
| Official website | EPFO website |
Employment Linked Incentive Scheme Part A
This Scheme offers a one-month EPF salary incentive up to Rs 15,000, which is paid out in two installments, to employees who have just enrolled with EPFO. Individuals who make up to Rs 1 lakh are eligible. After six months of employment, the first payment is made; the second payment is made after twelve months of service and the completion of financial literacy training. A part must be kept in a savings account for a predetermined amount of time to encourage saving behavior, with the option to withdraw it later. It is estimated that 1.92 crore new hires will benefit from this program.
Financial Benefits
- For workers who have just joined EPFO, this scheme provides a one-month EPF wage incentive up to Rs 15,000, which is paid out in two installments.
Employment Linked Incentive Scheme Part B
With a focus on manufacturing specifically, this component targets the development of extra jobs across industries. For employees making up to Rs 1 lakh, employers would receive incentives. This section will address the creation of new jobs across various industries, with a particular emphasis on manufacturing. For every extra employee who has been employed continuously for at least six months, the government would provide employers with incentives of up to Rs 3,000 per month for two years. Incentives will also be offered to the third and fourth years for the industrial sector. Businesses that are registered with EPFO will have to hire at least two more workers or five more employees consistently for a minimum of six months.
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Financial Benefits
| EPF Wage Slabs of Additional Employee (in | Benefit to the Employer (per additional employment per month) |
| Up to Rs 10,000* | Up to Rs 1,000 |
| More than Rs 10,000 and up to Rs 20,000 | Rs 2,000 |
| More than Rs 20,000 (upto salary of Rs 1 Lakh/month) | Rs 3,000 |
- For every extra employee who has been employed continuously for at least six months, the government would provide employers with incentives of up to Rs 3,000 per month for two years.
Eligibility Criteria
- The candidate must be a permanent resident of India and
- Should be employed by a corporation.
- Applicable to recently hired staff members across all industries.
- All individuals who have recently started working, get a monthly pay or salary of less than Rs. 1 lakh and are enrolled in the EPFO are eligible.
Required Documents
- Aadhar card
- Pan card
- Email id
- Mobile number
- Address details
- Contact details
Salient Features
- This program was started with the intention of formalizing employment by giving businesses and new recruits financial support.
- To boost hiring and employment in the formal sector, the Budget 2024 established three Employment Linked Incentive Schemes.
- New recruits will get up to Rs 15,000-, or one-month’s salary.
- For two years, employers will get incentives for creating jobs, and the manufacturing sector will continue to benefit for a further two years.
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Employment Linked Incentive Scheme Apply Online 2025
- Step 1: To apply for the Employment Linked Incentive Scheme the applicant must visit the EPFO website.
- Step 2: The homepage of the website will open on the screen and there you must select the Apply Online option from the online services option.
- Step 3: then fill in all the details and submit all the important documents required in the application form.
- Step 4: Check if all the information given is correct and make sure there are no errors.
- Step 5: Then click on the submit option and this way you can apply for the scheme.
Payment Method Under ELI Scheme
- Under Part A of the scheme, all payments to first-time employees would be made via the Aadhar Bridge Payment System (ABPS) under the DBT (Direct Benefit Transfer) method.
- Employers will get payments under Part B straight into their PAN-linked accounts.
Helpline Number
- Employees Provident Fund Organization, (Ministry of Labour & Employment)
- Plate A Ground Floor, Office Block-II, East Kidwai Nagar New Delhi-110023
FAQs
What is the Employment Linked Incentive Scheme (ELI)?
A government program called the Employment Linked Incentive (ELI) 2025 Scheme was unveiled in Budget 2024–2025.
What are the benefits of this new initiative?
This scheme has been launched with the goal of creating formal employment by providing financial assistance to both companies and new hires.
Who can apply for this scheme?
All individuals who have recently started working, get a monthly pay or salary of less than Rs. 1 lakh and are enrolled in the EPFO are eligible.
How can we apply for this scheme?
To apply for the Employment Linked Incentive Scheme the applicant must visit the https://www.epfindia.gov.in/