Employment Linked Incentive (ELI) Scheme: A Boost for Jobs, Skills, and Social Security

By Public Headlines Bureau | November 2025

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A Landmark Move for Employment Generation

In a major push towards job creation and formalisation of India’s workforce, the Government of India has approved the Employment Linked Incentive (ELI) Scheme — a Central Sector Scheme aimed at supporting employment generation, enhancing employability, and strengthening social security, with a particular focus on the manufacturing sector.

The Union Cabinet, chaired by the Prime Minister, cleared the scheme on 1 July 2025, marking one of the most ambitious employment support initiatives in recent years.

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Scale and Scope of the Scheme

With an outlay of ₹99,446 crore, the ELI Scheme is designed to incentivise the creation of over 3.5 crore new jobs across India within a two-year period, from 1 August 2025 to 31 July 2027.

The scheme will be implemented by the Ministry of Labour & Employment (MoLE) through the Employees’ Provident Fund Organisation (EPFO) — ensuring that every new job created under the scheme is linked to formal social security.

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Dual Structure: Empowering Employees and Employers

The ELI Scheme comprises two complementary parts —
Part A: Incentive to First-Time Employees, and
Part B: Support to Employers.

Together, they form a comprehensive framework to drive both job creation and workforce formalisation.

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Part A – Incentive to First-Time Employees

This component aims to benefit individuals joining the formal workforce for the first time.

Eligible employees — defined as “first-timers” joining between 1 August 2025 and 31 July 2027 — will receive a one-month wage incentive (Basic + DA) up to ₹15,000, paid in two instalments:

Installment	Amount	Eligibility Condition
1st Instalment	Up to ₹7,500	After 6 months of continuous employment
2nd Instalment	Up to ₹7,500	After 12 months of employment and completion of a Financial Literacy Course