New Delhi – In a landmark move to boost job creation and strengthen social security, the Union Cabinet headed by Prime Minister Narendra Modi has greenlit the Employment-Linked Incentive (ELI) scheme, with a massive outlay of ₹99,446 crore. The scheme, a major announcement from the Union Budget, aims to generate over 3.5 crore jobs across sectors while offering direct financial incentives to both employees and employers.
Under the initiative, first-time employees in the private sector will receive up to ₹15,000 in two phases — after completing 6 and 12 months of continuous employment. The funds will be deposited into a savings account, encouraging a culture of financial responsibility. Eligible employees earning up to ₹1 lakh/month and newly registered with EPFO can benefit from this support.
Employers also stand to gain. Those hiring new workers will receive incentives for two years based on the salary range of the hires — up to ₹3,000 per employee per month. To qualify, companies with fewer than 50 employees must recruit at least two new workers, while those with 50 or more must hire five.
All payments under the scheme will be transferred via Aadhaar-based Direct Benefit Transfer (DBT) — directly into employees’ savings accounts and employers’ PAN-linked business accounts.
With its dual focus on employment expansion and formal workforce growth, the ELI scheme is poised to be a game-changer — energizing India’s job market and empowering the country’s youth with sustainable career opportunities.
