Employment Linked Incentive scheme to come into effect across India from August 1

Mr. Jindal
2 Min Read

Employees in a textile mill. The employer would be eligible to get up to ₹3,000 per month for two years for each additional employee. For the manufacturing sector, the incentive would be extended to the third and fourth year. 

Employees in a textile mill. The employer would be eligible to get up to ₹3,000 per month for two years for each additional employee. For the manufacturing sector, the incentive would be extended to the third and fourth year. 
| Photo Credit: ANINDITO MUKHERJEE

“Employment Linked Incentive (ELI) launched by the Union Government to support employment generation, enhance employability and social security across all sectors will come into effect from August 1,” Regional PF Commissioner Paripuran Nath has said.

Addressing a press conference at EPFO office in Navanagar of Hubballi on July 9, Paripuran Nath said that, under the scheme, first-time employees would get one month wage up to ₹15,000, which would be given in two instalments of ₹7,500 each, and the money would be directly credited to their bank accounts

Employees with salary up to ₹1 lakh and registered with EPFO would be eligible for the incentive. “While the first instalment will be payable after six months, the second instalment will be payable after 12 months of service and completion of the financial literacy programme by the employee,” he said.

Under the scheme, the employers would receive incentives for a period of 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 employment generated between August 1, 2025 and July 31, 2027.

The employer would be eligible to get up to ₹3,000 per month for two years for each additional employee. For the manufacturing sector, the incentive would be extended to the third and fourth year. Establishments registered with EPFO would be required to hire at least two additional employees (establishments with less than 50 employees), or five additional employees (establishments with 50 or more employees), on a sustained basis for at least six months, he said.

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