Employment-Linked Incentive Scheme (ELI Scheme)
Dear all,
The Employment Linked Incentive Scheme 2025 (ELI Scheme) was approved by the Union Cabinet on July 1, 2025. The scheme is aimed to support job creation and enhance social security in India.
It is effective from 1st August 2025 to 31st July 2027.
The scheme has two parts:
Part A – First time employees
Part B – Employers
How first‑time employees Will Get the Benefits –
This scheme is designed for people who are joining the formal workforce for the first time. EPFO‑registered employees earning up to ₹1 lakh per month are eligible to receive payment up to ₹15,000, paid in two instalments:
1st instalment: after six months of continuous service
2nd instalment: after twelve months, once a short financial training course is completed.
How Employers Will Get the Benefits –
Employers will receive a monthly incentive for every new eligible employee they hire and retain:
₹1,000 for workers earning up to ₹10,000/month
₹2,000 for workers earning between ₹10,001 and ₹20,000/month
₹3,000 for workers earning between ₹20,001 and ₹1 lakh/month
To qualify, employers must hire at least two new employees if they have fewer than 50 workers, or five new employees if they have 50 or more employees.
These employees must stay on the payroll for a minimum six months.