PIONEER NEWS SERVICE/Dehradun
Employment Linked Incentive (ELI) is more than just a job creation scheme; it aims to promote financial literacy, encourage savings habits and enhance social security awareness among youth, regional provident fund commissioner Vishwajeet Sagar said while addressing the media on Monday.
Sagar said that to foster sustainable economic growth and create large-scale employment opportunities for the youth, the Central government has recently approved this scheme. Its primary objective is to connect millions of young people to formal employment, improve financial literacy and incentivise industries to create new job opportunities. With a dedicated budget of Rs 99,446 crore, the ELI scheme aims to facilitate the creation of over 3.5 crore jobs within a two-year period. The benefits of the scheme will apply to jobs generated between August 1, 2025 and July 31, 2027. The scheme consists of two parts- part A focuses on first-time workers while part B targets employers. Part A of the scheme encourages youth entering employment for the first time and those who are first-time registrants with the Employees’ Provident Fund Organisation (EPFO). Under this part, eligible employees will receive one month’s EPF wage, up to Rs 15,000, in two installments. Employees with salaries up to Rs one lakh will be eligible for this incentive, he said. Sagar added that the first installment will be given after six months of continuous service, while the second installment will be disbursed after twelve months of service and the completion of a financial literacy programme. A portion of the incentive will be deposited into a savings account for a fixed period and can be withdrawn by the employee later, he said.
He said that part B focuses on incentivising employers, particularly in the manufacturing sector, to generate employment. This includes employers hiring new workers earning up to Rs one lakh per month will receive an incentive of up to Rs 3,000 per month for each additional employee for two years. For employers in the manufacturing sector, this incentive will be extended into the third and fourth years as well. To be eligible, establishments must employ at least two additional workers (for those with fewer than 50 employees) or five additional workers (for those with 50 or more employees) on a sustained basis for at least six months. Sagar said that the government is committed to ensuring both economic and social security for every young citizen while supporting industries in achieving new heights of growth.
