Employment Linked Incentive (ELI) Scheme:
The Union Cabinet chaired by the Prime Minister of India has approved the Employment Linked Incentive (ELI) Scheme.
- Employment Linked Incentive (ELI) Scheme will support employment generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector.
- The ELI Scheme was announced in the Union Budget 2024-25 as part of PM’s package of five schemes to facilitate employment, skilling and other opportunities for 4.1 Crore youth with a total budget outlay of Rs 2 Lakh Crore.
- It aims to incentivize the creation of more than 3.5 Crore jobs in the country, over a period of 2 years. Out of these, 1.92 Crore beneficiaries will be first timers, entering the workforce.
- Under the Scheme, while the first-time employees will get one month’s wage (up to Rs 15,000/-), the employers will be given incentives for a period of up to two years for generating additional employment, with extended benefits for another two years for the manufacturing sector.
- The benefits of the Scheme would be applicable to jobs created between 01st August 2025 and 31st July, 2027.
- The Scheme consists of two parts with Par A focused on first timers and Part B focused on employers:
