CHANDIGARH, July 9 — The newly launched Employment Linked Incentive (ELI) scheme, with an outlay of ₹99,446 crore, aims to generate over 3.5 crore jobs across India in two years, Additional Central Provident Fund Commissioner (ACPFC) Rajiv Bisht announced on Wednesday during his visit to the Employees’ Provident Fund Organisation (EPFO) zonal office in Chandigarh.
The ambitious scheme, recently approved by the Union Cabinet, is designed to boost job creation, enhance employability, and expand social security coverage, especially in the manufacturing sector. “This initiative is a key step in formalising the workforce and ensuring job-linked benefits reach both employees and employers,” Bisht said, flanked by Regional Provident Fund Commissioners Amit Singla and Ritesh Saini.
The scheme is divided into two parts:
Part A targets first-time employees, offering a financial incentive equal to one month’s wage (up to ₹15,000) for jobs created between August 1, 2025, and July 31, 2027. To be eligible, employees must earn up to ₹1 lakh per month and complete a financial literacy programme. The first installment will be paid after six months of continuous employment, and the second after 12 months. Bisht said this part alone is expected to benefit around 1.92 crore new entrants to the workforce.
Part B focuses on employers, providing a monthly incentive of up to ₹3,000 per employee for two years for creating additional sustained employment across sectors, with a special emphasis on manufacturing. For manufacturers, the benefit will extend into the third and fourth years.
To qualify, establishments must be EPFO-registered and hire at least two additional workers (for employers with fewer than 50 employees) or five additional workers (for those with 50 or more), with employment retained for a minimum of six months.
Bisht underlined the importance of transparency and efficiency in the rollout. “All payments to employees under Part A will be made through direct benefit transfer (DBT), while employer incentives under Part B will be directly credited to PAN-linked bank accounts,” he said.
Calling the ELI scheme part of the government’s broader vision to formalise the labour market, Bisht said it would provide a critical push to India’s youth, ensuring they not only find employment but also receive the social security they are entitled to.
