Employment Linked Incentive Scheme (ELI)

The Central Government, under its Employment Linked Incentive Scheme now known as PM Viksit Bharat Rozgar Yojana, will provide a financial incentive of up to Rs. 15,000 to first-time employees and a financial incentive of up to Rs. 3,000 per employee per month to those employers who are willing to hire additional workforce for their establishments.
Read here the complete details about the scheme.

Introduction of Employment Linked Incentive Scheme: A Brief Insight

• Finance Minister Smt. Nirmala Sitharaman announced the Employment Linked Incentive Scheme (ELI Scheme) in her budget speech of the year 2024-2025.
• This scheme is part of the Prime Minister’s package of five schemes aimed at generating employment and providing skill training and other opportunities to the country’s youth.
• One package of “PM Internship Scheme” was already launched by the government, in which internship opportunities with top 500 companies with a monthly stipend will be provided to youths.
• Now on 1st of July 2025, under the chairmanship of the Honorable Prime Minister of India, Shri Narendra Modi, the Central Government’s cabinet gave its approval to launch the Employment Linked Incentive (ELI) Scheme.
• Nodal Ministry changed the name of the Employment Linked Incentive Scheme to PM Viksit Bharat Rozgar Yojana.
• The main objective of the government behind starting the ELI Scheme is to enhance the job creation by providing support to employers across all sectors.
• Employment Linked Incentive Scheme will be implemented by the Ministry of Labour & Employment of the Central Government.
• This scheme has two main components :-
  • Part A – Incentive to First-Time Employees.
  • Part B – Support to Employers.
• Part A – Incentive to First-Time Employees :-
  

  Financial incentives will be provided to those youths who join any sector as a first-time employee. This means that the youth who registered with EPFO for the first time are eligible to receive financial incentives under the Employment Linked Incentive Scheme of the Central Government. The applicable incentive is one month’s EPF wage or a maximum of Rs. 15,000/-. The government will disburse this incentive amount in 2 installments, of which 1st installment will be released after completing 6 months of employment and 2nd installment will be released after completing 12 months of employment and the Financial Literacy Programme.

• Part B – Support to Employers :-
  

  The Central Government will also incentivize the Employer for the creation of job opportunities for youths. Financial Incentive up to Rs. 3,000/- per month per employee will be provided to the employer for providing a job to every additional youth. If an employer has fewer than 50 working employees, then it is mandatory to enroll at least 2 additional employees. And, if an employer has more than 50 working employees, then it is mandatory to enroll at least 5 additional employees. The disbursement of the amount of incentive to the employer under the Employment Linked Incentive Scheme is as follows :- Per Month EPF Wage Slab of Employee Per-Month Incentive to Employer 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/- and up to Rs. 1 Lakh Rs. 2,000/-

• Every employer will receive the benefits of the Employment Linked Incentive Scheme for 2 years, except the manufacturing sector, which will receive the benefits of the ELI Scheme for 4 years.
• The amount of Financial Incentive to the Employee will be transferred through the DBT mode in the aadhaar-linked bank account.
• Whereas, the monthly financial incentive to the employer will be transferred in the PAN Card-linked bank account.
• It is estimated that more than 1.92 crore first-time beneficiaries and more than 2.60 crore employers will get the benefit of financial incentive under the Employment Linked Incentive (ELI) Scheme of the Central Government.
• Employment Linked Incentive Scheme benefits will be applicable for jobs that are created between 1st of August 2025 to 31st of July 2027.
• Ministry of Labour & Employment which is a nodal department of this scheme changed the name of Employment Linked Incentive Scheme to PM Viksit Bharat Rozgar Yojana.
• From now onwards, ELI Scheme is known as PM Viksit Bharat Rozgar Yojana.

Benefits Provided to Eligible Beneficiaries

• Central Government under its Employment Linked Incentive Scheme (ELI Scheme) will provide the following benefits to first-time employees and the employees who created jobs :-
  

  For Employee

  Financial Incentive will be provided to the First-time employees registered with EPFO. Employee will receive an incentive of One month’s EPF Wage up to Rs. 15,000/-. Incentive Amount will be disbursed in 2 Installments. First Installment will be payable on completion of 6 months of service. Second Installment will be payable on completion of 12 months of service and completion of a Financial Literacy Programme. Financial Incentive will be provided to the Employee in their Aadhaar-linked Bank Account.

  For Employer

  The employer will also get a financial incentive for the creation of a job. The government will provide an incentive up to Rs. 3,000/- per month for two years for per employee. Manufacturing Sector Employer will receive the benefit for 4 years. Incentive to the Employer will be disbursed as per the EPF wage slab of the Employee as mentioned below :- Rs. 1,000/- per month Incentive for up to Rs. 10,000/- per month Salary. Rs. 2,000/- per month Incentive for more than Rs. 10,000/- and up to Rs. 20,000/- per month Salary. Rs. 3,000/- per month Incentive for more than Rs. 20,000/- and up to Rs. 1 lakh per month salary. Incentive to the Employer will be disbursed directly in the PAN Card-linked bank Account.

Eligibility Conditions Required to be Fulfilled

• Benefits of Incentive to First Time Employees and Support to Employers under Employment Linked Incentive Scheme (ELI Scheme) of the Central Government will be provided to only those beneficiaries who fulfill the below-mentioned eligibility criteria of the scheme :-
  

  For Employee

  The beneficiary should be a First-time employee. Beneficiary should be registered with EPFO. First Time Employees’ Monthly Salary should not be more than Rs. 1,00,000/-. Beneficiary Employee should have been employed for a minimum 6 months.

  For Employer

  The benefits of the ELI Scheme apply to all Sector Employers. Employers having less than 50 Employees will have to hire at least 2 additional employees. Employers having more than 50 employees will have to hire at least 5 additional employees. Benefits to the Employer will only be applicable when the Employee has completed at least 6 months of employment. Employee’s Salary should be less than Rs. 1,00,000/- per month.

Documents Required to be Attached

• Employer and Employee will have to submit the following documents in order to avail the benefits of the Central Government’s Employment Linked Incentive Scheme :-
  

  For Employee

  Aadhaar Card. Bank Account. (Aadhaar Linked) PAN Card. UAN Number. Joining Letter of Employee. Mobile Number and Email. Recent Passport Size Photo.

  For Employer

  Employer Establishment Details. Employer Personal Details. EPFO Registration Number. PAN Card of Employer. Details of Employees.

How Beneficiaries Can Apply to Avail the Benefit of this Scheme

• Beneficiaries can avail the benefit of financial incentive under the Central Government’s Employment Linked Incentive Scheme by following the process as mentioned below for both the Employee and the Employer.

For Employee

• Beneficiary youth who are going to be an employee for the first time will have to join the establishments that are registered with Employees’ Provident Fund Organisation. (EPFO)
• Submit all the required documents and take gainful employment.
• The employer will register the new employee with EPFO after filling and submitting all the details.
• Employees registered as first-time employee with EPFO are automatically eligible to receive the financial incentive of their 1-month EPF wage or up to Rs. 15,000/-.
• Upon completion of 6 months in service, the central government will release the first installment of financial incentive in the aadhaar-linked bank account of the employee as promised under the Employment Linked Incentive (ELI) Scheme.
• Then, the beneficiary youth will have to take part in the Financial Literacy Programme.
• Second Installment of financial incentive under the ELI Scheme will be released upon completion of 12 months of service and completion of the financial literacy programme.
• Contact EPFO in case any help or assistance is required regarding the Employment Linked Incentive Scheme of the Central Government.

For Employer

• Establishments registered with the Employees’ Provident Fund Organization and those exempted can also avail the benefit of financial incentive under the Employment Incentive Scheme of the Central Government by just hiring the new and additional workforce.
• There is no obligation on the employee to hire only first timers, benefits will be applicable also if the already registered employee with EPFO takes employment.
• It is mandatory for an establishment to hire at least 2 additional employees in case of less than employees and at least 5 additional employees in case of more than 50 employees already working.
• Financial incentives to the employer will only be applicable if the employee is gainfully employed for at least 6 months.
• The amount of the Financial Incentive will be transferred in the PAN Card-linked bank account of the employer.
• The benefits of the Employment Linked Incentive (ELI) Scheme will be applicable on hiring of an employee after 01-08-2025.

Important Links Available

• PM Viksit Bharat Rozgar Yojana.
• Official Website of Ministry of Labour & Employment.
• Guidelines of Employment Linked Incentive Scheme.

Contact Details in Case of Help Needed

• Contact Details of Ministry of Labour and Employment.

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