What is the Employment Linked Incentive Scheme? How much money will the government deposit in the account, who will get the benefit?

To increase employment opportunities in the country, the Modi government has launched a new scheme called Employment Linked Incentive i.e. ELI. The Government of India had announced this scheme in the Union Budget 2024-25 on 23 July 2024. On July 1, the Cabinet approved this scheme. Through this scheme, the central government will give Rs 15000 from its side to the youth who get jobs for the first time. The ELI scheme will be operated by the Employees Provident Fund Organization (EPFO).

Let's understand what the Employment Linked Incentive Scheme. Who will benefit from this? What has to be done to take advantage of the scheme? How much money will be available in which salary slab:-

What is the Employment Linked Incentive Scheme?

Employment Linked Incentive Scheme means that the government will give money to those companies and businesses that will give jobs to the maximum number of people. You can call it a kind of reward, which the government will give to companies in return for hiring new people and making them skilled.

What is the purpose of the scheme?

The Employment Linked Incentive Scheme aims to create as many jobs as possible in the country. The government wants to increase employment, especially in the manufacturing sector. Along with this, it wants to make the youth of 18-35 years skilled, so that productivity increases. This scheme will also support small and medium businesses. Research and innovation will be promoted. The focus of the government is also to promote the Make in India vision.

Focus on whom?

This scheme focuses especially on increasing jobs for youth, small and medium enterprises (MSMEs), and different sectors like manufacturing, services, and technology.

How long will this scheme run?

The Employment Linked Incentive Scheme will start from August 1, 2025. It will run till 31 July 2027. In such a situation, a target has been set to create more than 3.5 crore jobs within 2 years.

How will the structure of ELIS be?

This scheme is divided into 2 parts. Part A and Part B. Part A is for those people who are starting a job for the first time. They will be registered with EPFO. Such employees will be given the first month's salary (maximum 15,000) in two parts. This 15000 will be given to those people whose salary is up to Rs 1 lakh.

When will this money be received?

Under the scheme, the first installment will be given after working for 6 months. The second installment will be given after working for 12 months and completing the financial literacy program. The amount will be given through Direct Benefit Transfer (DBT). Aadhaar Bridge Payment System (ABPS) will be used in this. A part of this incentive will be kept in a savings account or deposit, which employees can withdraw later.

How and when will the benefit of Part B be available?

Part B of the scheme focuses on creating more jobs in every sector. Companies will get incentives for employees whose salary is up to Rs 1 lakh. Under the scheme, the government will give companies Rs 3,000 per month per employee for two years. The condition is that the employee remains in the job for at least 6 months. For the manufacturing sector, this incentive will also be available for the third and fourth year.

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