The government on Tuesday approved the Employment Linked Incentive Scheme (ELI) worth Rs 1.07 lakh crore. The scheme aims to create 3.5 crore jobs in the next 2 years through social security schemes run by the Employees’ Provident Fund Organization (EPFO).
Information and Broadcasting Minister Ashwini Vaishnav said that this big decision has been taken in the Union Cabinet meeting chaired by Prime Minister Narendra Modi. Its aim is to increase employment in different sectors, increase employment potential and promote social security. In this, special attention will be given to the manufacturing sector.
First time job holders will get incentive of Rs 15,000
This scheme will also provide incentives to first-time employees. Under this scheme, employees hired for the first time will get one month’s salary (up to Rs 15,000). At the same time, employers will be given incentives for a period of 2 years for additional employment generation. Also, the benefit for the manufacturing sector will be extended for another 2 years. The ELI scheme was announced in the Union Budget 2024-25 as part of a package of 5 schemes to facilitate employment, skill and other opportunities for 4.1 crore youth. Its total budget outlay was Rs 2 lakh crore.
Employees with salary up to Rs 1 lakh will get benefit
Out of the 3.5 crore beneficiaries under the ELI scheme, 1.92 crore will be first-timers joining the workforce. The benefits of the scheme will be applicable to jobs created between August 1, 2025 and July 31, 2027. The scheme has two parts. The first part focuses on first-time employees and the second part focuses on employers. Targeting employees registering with the EPFO for the first time, one month’s salary up to Rs 15,000 will be given in two installments under the first part. Employees with a salary of up to Rs 1 lakh will be eligible. The first installment will be given after six months of service and the second installment will be given after 12 months of service and the employee completing a financial literacy program.
A part of the incentive amount will be kept in savings or deposit account
“To promote the habit of saving, a part of the incentive amount will be kept in a savings instrument or deposit account for a fixed period and employees will be able to withdraw it later. Under the first part, about 1.92 crore first-time job seekers will get the benefit,” the statement said. The second part of the scheme is linked to additional employment generation in all sectors, with a special focus on the manufacturing sector. Employers will get incentives in respect of employees with a salary of up to Rs 1 lakh.
Employers will get Rs 3000 per employee every month
The government will provide incentives of up to Rs 3,000 per month for two years to employers for each additional employee employed continuously for at least six months. For the manufacturing sector, the incentives to employers can also be extended for the third and fourth years. Under the first part of the scheme, all payments to first-time employees will be made through DBT (Direct Benefit Transfer) mode through the ‘Aadhaar Bridge Payment System’ (ABPS). Under the second part, payments to employers will be made directly into their PAN-linked accounts.
Most Read Articles:-
-
Honorarium Hike: Big gift to Anganwadi workers, 10% increase in honorarium, will get benefits
-
Big News For Government employees… Do this work quickly, otherwise your salary will be stopped
-
Weather High Alert: Heavy rain alert in 25 districts for next 48 hours, check here
-
How can you get a birth certificate, where do you have to apply ?
-
IRCTC new Rule: These rules of railways have changed from today, read this news before booking tickets