The Indian government is all set to launch the Employment Linked Incentive (ELI) Scheme starting August 1, 2025. Under this scheme, young individuals entering the workforce for the first time will receive a financial incentive of ₹15,000 from the government. The main objective is to encourage youth employment, create a skilled workforce for the future, meet the immediate need for job creation, and promote the manufacturing industry.
Who Will Benefit from the Scheme?
The ELI scheme will benefit employees who join work between August 1, 2025, and July 31, 2027. Those who join before or after this period will not be eligible. The government has allocated a budget of ₹99,446 crore for this initiative.
Importantly, both employees and companies will benefit from the scheme. Employers will receive ₹3,000 per employee per month as an incentive. The government aims to boost employment through a more structured and effective framework.
What Qualifies as a First Job?
To qualify as a first job under this scheme, the employee must be earning up to ₹1 lakh per month and should be enrolled in the EPF (Employees’ Provident Fund) for the first time. For instance, if you have a job where EPF is not deducted, you won’t be eligible yet. But once you join an EPF-covered job after August 1, you become eligible.
The incentive will be equal to one month’s EPF salary, up to a maximum of ₹15,000. The payment will be made in two instalments:
- The first instalment after 6 months
- The second instalment after 12 months, provided the employee completes a financial literacy program.
The government will also provide incentives to companies per eligible employee.
Conditions for Companies
- Companies will receive ₹3,000 per employee per month for those earning between ₹20,000 and ₹1 lakh.
- If the employee earns ₹10,000 or less, the incentive will be proportional to the salary.
- To qualify, companies must be registered under EPFO.
- Companies with less than 50 employees must hire at least 2 new employees.
- Companies with more than 50 employees must hire at least 5 new employees, who must stay with the organisation for at least 6 months.
Another Unique Feature
The best part is – there’s no need to apply for the scheme. Once your PF account is activated, your data will be automatically available to the government. After 6 months of continuous EPF deductions, the incentive amount will be credited directly to your bank account.