ITANAGAR, 18 Jul: The central government recently launched the Employment Linked Incentive (ELI) scheme, with an outlay of Rs 99,446 crore.
Aimed at incentivizing the creation of over 3.5 crore jobs across sectors, especially manufacturing, the scheme will be implemented by the Ministry of Labour and Employment through the Employees’ Provident Fund Organisation (EPFO).
Regional Provident Fund Commissioner-II (RPFC) in Itanagar, Sanjay Kumar Srivastava said, “The ELI scheme is a landmark step towards promoting job creation and supporting both employees and employers. It not only provides direct financial benefits but also encourages formal employment and financial literacy.”
The scheme consists of two parts. Part A focused on incentives for first-time employees and Part-B focuses on employers and extends support to employers hiring additional workers.
Under Part A component of the scheme, new employees will receive a one-time incentive equivalent to one month’s wages (Basic + DA) up to Rs 15,000, paid in two installments. The first installment (up to Rs 7,500) will be released after six months of continuous employment. The second installment will follow after 12 months and completion of an online financial literacy programme hosted on the EPFO portal. Employees earning up to Rs 1 lakh per month are eligible.
Part B of the scheme for the employers offers a structured incentive up to Rs 3,000 per month per additional employee for a period of two years. For establishments in the manufacturing sector, this benefit will extend to four years. The incentive will vary based on the wage slab of the new employee.
To qualify, employers must hire at least two additional employees (if current strength is below 50) or five additional employees (if 50 or more), sustained over six months. The scheme sets a baseline employment figure, calculated based on the average number of employees over the past year or months leading up to 1 August, 2025, depending on the age of the establishment’s EPFO registration.
“The goal is to bring more workers into the fold of formal employment, ensure timely contributions to social security, and reward those creating sustainable job opportunities,” Srivastava emphasized.
The ELI scheme covers jobs created between 1 August, 2025 and 31 July, 2027. Employers and employees are encouraged to visit the EPFO portal or contact the Itanagar EPFO office for guidance and registration under this transformative initiative.