{"id":35696,"date":"2025-07-17T15:08:04","date_gmt":"2025-07-17T09:38:04","guid":{"rendered":"https:\/\/edunovations.com\/currentaffairs\/?p=35696"},"modified":"2025-07-17T15:08:07","modified_gmt":"2025-07-17T09:38:07","slug":"employment-linked-incentive-scheme-2025","status":"publish","type":"post","link":"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/","title":{"rendered":"Employment Linked Incentive Scheme 2025: \u20b999,446 Cr Boost for 3.5 Crore Jobs in India"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Employment_Linked_Incentive_Scheme_2025_approved_by_the_Indian_Cabinet_aims_to_create_35_crore_formal_jobs_through_EPFO-linked_benefits_for_employees_and_employers\" >Employment Linked Incentive Scheme 2025 approved by the Indian Cabinet aims to create 3.5 crore formal jobs through EPFO-linked benefits for employees and employers.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Cabinet_Approves_%E2%82%B91_Lakh_Crore_Employment%E2%80%91Linked_Incentive_Scheme\" >Cabinet Approves \u20b91 Lakh Crore Employment\u2011Linked Incentive Scheme<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Background_Announcement\" >Background &amp; Announcement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Objectives_Scope\" >Objectives &amp; Scope<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Part_A_Incentives_for_First%E2%80%91Time_Employees\" >Part A: Incentives for First\u2011Time Employees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Part_B_Support_to_Employers\" >Part B: Support to Employers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Implementation_Timeline\" >Implementation &amp; Timeline<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Expected_Outcomes_Impact\" >Expected Outcomes &amp; Impact<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#%F0%9F%8C%9F_Why_This_News_Is_Important\" >\ud83c\udf1f Why This News Is Important<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Boost_to_Youth_Employment\" >Boost to Youth Employment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Formalization_Social_Security\" >Formalization &amp; Social Security<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Manufacturing_Sector_Focus\" >Manufacturing Sector Focus<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Fiscal_Policy_Significance\" >Fiscal &amp; Policy Significance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Exam_Relevance\" >Exam Relevance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#%F0%9F%95%B0%EF%B8%8F_Historical_Context\" >\ud83d\udd70\ufe0f Historical Context<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Origins_in_Budget_2024%E2%80%9125\" >Origins in Budget 2024\u201125<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Previous_Employment_Schemes\" >Previous Employment Schemes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Response_to_Rising_Unemployment\" >Response to Rising Unemployment<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#%F0%9F%93%8C_Key_Takeaways_from_Employment%E2%80%91Linked_Incentive_Scheme\" >\ud83d\udccc Key Takeaways from Employment\u2011Linked Incentive Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#FAQs_Frequently_Asked_Questions\" >FAQs: Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#1_What_is_the_objective_of_the_Employment%E2%80%91Linked_Incentive_ELI_Scheme\" >1. What is the objective of the Employment\u2011Linked Incentive (ELI) Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#2_Who_is_eligible_to_receive_benefits_under_Part_A_of_the_ELI_Scheme\" >2. Who is eligible to receive benefits under Part A of the ELI Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#3_What_is_the_eligibility_criterion_for_employers_to_avail_incentives\" >3. What is the eligibility criterion for employers to avail incentives?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#4_For_how_long_will_this_scheme_be_implemented\" >4. For how long will this scheme be implemented?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#5_How_will_the_benefits_be_disbursed_under_this_scheme\" >5. How will the benefits be disbursed under this scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#6_How_is_this_scheme_different_from_previous_employment_initiatives\" >6. How is this scheme different from previous employment initiatives?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/employment-linked-incentive-scheme-2025\/#Some_Important_Current_Affairs_Links\" >Some Important Current Affairs Links<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Employment_Linked_Incentive_Scheme_2025_approved_by_the_Indian_Cabinet_aims_to_create_35_crore_formal_jobs_through_EPFO-linked_benefits_for_employees_and_employers\"><\/span><strong>Employment Linked Incentive Scheme 2025<\/strong> approved by the Indian Cabinet aims to create 3.5 crore formal jobs through EPFO-linked benefits for employees and employers.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cabinet_Approves_%E2%82%B91_Lakh_Crore_Employment%E2%80%91Linked_Incentive_Scheme\"><\/span>Cabinet Approves \u20b91 Lakh Crore Employment\u2011Linked Incentive Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Background_Announcement\"><\/span>Background &amp; Announcement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">On <strong>1 July 2025<\/strong>, the Union Cabinet chaired by Prime Minister Narendra Modi approved the <strong>Employment\u2011Linked Incentive (ELI) Scheme<\/strong>, with a staggering outlay of <strong>\u20b999,446 crore<\/strong>\u2014nearly \u20b91 lakh crore\u2014targeted at generating <strong>3.5 crore jobs<\/strong> over two years As announced in the Union Budget 2024\u201125, this is one of five flagship initiatives to promote employment and skilling across sectors <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objectives_Scope\"><\/span>Objectives &amp; Scope<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The ELI Scheme aims to formalize the workforce by incentivizing both <strong>first\u2011time employees<\/strong> and <strong>employers<\/strong>. It spans across manufacturing, services, and all formal sectors, focusing particularly on bringing youth under the social security umbrella <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Part_A_Incentives_for_First%E2%80%91Time_Employees\"><\/span>Part A: Incentives for First\u2011Time Employees<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Targets <strong>approx. 1.92 crore youth<\/strong> entering the workforce for the first time <\/li>\n\n\n\n<li>Eligible individuals (salary \u2264 \u20b91 lakh\/month, EPFO\u2011registered) receive:\n<ol class=\"wp-block-list\">\n<li><strong>First installment<\/strong>: after <strong>6 months\u2019<\/strong> continuous employment<\/li>\n\n\n\n<li><strong>Second installment<\/strong>: after <strong>12 months<\/strong> and completing a financial literacy program<\/li>\n<\/ol>\n<\/li>\n\n\n\n<li>Each installment equals <strong>one month\u2019s wage<\/strong>, capped at \u20b915,000 <\/li>\n\n\n\n<li>A portion of the incentive is directed into a <strong>savings account<\/strong>, instilling savings habits <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Part_B_Support_to_Employers\"><\/span>Part B: Support to Employers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Aims to generate employment for <strong>approx. 2.6 crore additional workers<\/strong> <\/li>\n\n\n\n<li>EPFO\u2011registered employers must hire:\n<ul class=\"wp-block-list\">\n<li><strong>\u22652<\/strong> new employees if they employ &lt;50; or<\/li>\n\n\n\n<li><strong>\u22655<\/strong> if they employ \u226550 <\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Incentives (up to \u20b93,000\/month) based on salary slabs: EPF Wage SlabIncentive\u2264 \u20b910,000\u20b91,000\u20b910,001\u2013\u20b920,000\u20b92,000\u20b920,001\u2013\u20b91 Lakh\u20b93,000<\/li>\n\n\n\n<li>Applicable for <strong>two years<\/strong>, extended to <strong>four years<\/strong> for manufacturing sector hires <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Implementation_Timeline\"><\/span>Implementation &amp; Timeline<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Scheme period: <strong>1 Aug 2025 \u2013 31 Jul 2027<\/strong>.<\/li>\n\n\n\n<li><strong>Direct Benefit Transfer (DBT)<\/strong> channels will be used:\n<ul class=\"wp-block-list\">\n<li>For employees: via <strong>Aadhaar Bridge Payment System (ABPS)<\/strong><\/li>\n\n\n\n<li>For employers: credited to <strong>PAN-linked accounts<\/strong> <\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Expected_Outcomes_Impact\"><\/span>Expected Outcomes &amp; Impact<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Creation of <strong>3.5 crore formal jobs<\/strong>, out of which <strong>1.92 crore<\/strong> are first-time entrants <\/li>\n\n\n\n<li>Enhanced <strong>employability<\/strong>, <strong>social security coverage<\/strong>, and <strong>workforce formalization<\/strong> <\/li>\n\n\n\n<li>A major boost aimed at youth employment\u2014critical given the recent spike in urban youth unemployment (~17.9%)<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\" id=\"employment-linked-incentive-scheme-2025\"><img decoding=\"async\" src=\"https:\/\/thefederal.com\/h-upload\/2025\/07\/02\/545480-employment11zon.webp\" alt=\"employment linked incentive scheme 2025\" title=\"employment linked incentive scheme 2025\"\/><figcaption class=\"wp-element-caption\">employment linked incentive scheme 2025<\/figcaption><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%F0%9F%8C%9F_Why_This_News_Is_Important\"><\/span>\ud83c\udf1f Why This News Is Important<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Boost_to_Youth_Employment\"><\/span>Boost to Youth Employment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">India faces significant youth unemployment, with rates reaching nearly <strong>18%<\/strong> in urban areas for ages 15\u201329 . The ELI scheme directly addresses this by creating <strong>3.5 crore formal jobs<\/strong>, especially targeting fresh job\u2011seekers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Formalization_Social_Security\"><\/span>Formalization &amp; Social Security<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">By incentivizing <strong>EPFO-registered hires<\/strong>, the scheme helps shift workers into the formal sector, promoting <strong>social security<\/strong>, provident fund contributions, and financial inclusion through DBT.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Manufacturing_Sector_Focus\"><\/span>Manufacturing Sector Focus<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Given India&#8217;s emphasis on <strong>Atmanirbhar Bharat<\/strong> and boosting domestic manufacturing, the extended support (up to four years) provides a strategic advantage to this critical sector\u2014supporting the <strong>Make in India<\/strong> vision.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fiscal_Policy_Significance\"><\/span>Fiscal &amp; Policy Significance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">With nearly \u20b91 lakh crore allocated and part of a broader \u20b92 lakh crore five-year package from Budget 2024\u201125, this scheme signifies the government&#8217;s seriousness about long-term employment strategy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exam_Relevance\"><\/span>Exam Relevance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For aspirants of banking, railways, police, civil services, and teaching roles, this news is significant under <strong>current affairs<\/strong> (national economy, schemes, social security)\u2014a regular topic in prelims and mains exams.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%F0%9F%95%B0%EF%B8%8F_Historical_Context\"><\/span>\ud83d\udd70\ufe0f Historical Context<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Origins_in_Budget_2024%E2%80%9125\"><\/span>Origins in Budget 2024\u201125<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The ELI scheme was unveiled in <strong>Budget 2024\u201125<\/strong> as part of a \u20b92 lakh crore employment and skilling initiative, aiming to support <strong>4.1 crore youth<\/strong> <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Previous_Employment_Schemes\"><\/span>Previous Employment Schemes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This scheme builds upon past initiatives like the <strong>Pradhan Mantri Kaushal Vikas Yojana (PMKVY)<\/strong> launched in 2015 and integrates past learnings for better workforce alignment and skill-enhancement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Response_to_Rising_Unemployment\"><\/span>Response to Rising Unemployment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Despite solid GDP growth, India&#8217;s youth joblessness surged over 2024\u201125, with rural youth unemployment touching <strong>13.7%<\/strong> ELI is a direct policy tool to mitigate this trend.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%F0%9F%93%8C_Key_Takeaways_from_Employment%E2%80%91Linked_Incentive_Scheme\"><\/span>\ud83d\udccc Key Takeaways from Employment\u2011Linked Incentive Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>S.No<\/th><th>Key Takeaway<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td><strong>Scheme outlay<\/strong>: \u20b999,446\u202fcr aimed to create 3.5\u202fcr jobs (Budget 2024\u201125)<\/td><\/tr><tr><td>2<\/td><td><strong>Part A<\/strong>: First\u2011time employees (\u2264 \u20b91\u202fL salary) get a one\u2011month wage (\u20b915,000 max) in two stages after 6 &amp; 12 months<\/td><\/tr><tr><td>3<\/td><td><strong>Part B<\/strong>: Employers get \u20b91k\u2013\u20b93k\/month per additional hire (\u22656 mo retention); extended to 4 years for manufacturing<\/td><\/tr><tr><td>4<\/td><td><strong>Coverage period<\/strong>: Jobs created between 1\u202fAug\u202f2025 \u2013 31\u202fJul\u202f2027<\/td><\/tr><tr><td>5<\/td><td><strong>Implementation<\/strong>: Payments via DBT\u2014employee: ABPS; employer: PAN\u2011linked account<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">employment linked incentive scheme 2025<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_Frequently_Asked_Questions\"><\/span>FAQs: Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_What_is_the_objective_of_the_Employment%E2%80%91Linked_Incentive_ELI_Scheme\"><\/span>1. What is the objective of the Employment\u2011Linked Incentive (ELI) Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The ELI Scheme aims to create <strong>3.5 crore formal jobs<\/strong> by incentivizing first-time employees and employers hiring new workers into the formal sector.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Who_is_eligible_to_receive_benefits_under_Part_A_of_the_ELI_Scheme\"><\/span>2. Who is eligible to receive benefits under Part A of the ELI Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Employees earning a <strong>monthly wage of \u20b91 lakh or less<\/strong>, who are registered under <strong>EPFO<\/strong> and are first-time entrants to the workforce, are eligible.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_What_is_the_eligibility_criterion_for_employers_to_avail_incentives\"><\/span>3. What is the eligibility criterion for employers to avail incentives?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Employers must be <strong>registered with EPFO<\/strong>, and should hire <strong>at least 2 new employees<\/strong> (if &lt;50 workers) or <strong>5 employees<\/strong> (if \u226550 workers) to qualify.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_For_how_long_will_this_scheme_be_implemented\"><\/span>4. For how long will this scheme be implemented?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The scheme will be in force for employment generated between <strong>1 August 2025 and 31 July 2027<\/strong>. In the manufacturing sector, benefits to employers may extend up to <strong>4 years<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_How_will_the_benefits_be_disbursed_under_this_scheme\"><\/span>5. How will the benefits be disbursed under this scheme?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Disbursement will be done via <strong>Direct Benefit Transfer (DBT)<\/strong>. Employees will receive it through the <strong>Aadhaar-based Payment Bridge System (ABPS)<\/strong>, and employers through their <strong>PAN-linked accounts<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_How_is_this_scheme_different_from_previous_employment_initiatives\"><\/span>6. How is this scheme different from previous employment initiatives?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The ELI Scheme uniquely combines <strong>employee and employer incentives<\/strong>, focusing both on job creation and workforce formalization, unlike earlier schemes which primarily focused on skilling.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Important_Current_Affairs_Links\"><\/span>Some Important Current Affairs Links<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/national\/\" target=\"_blank\" rel=\"noreferrer noopener\">State Current Affairs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline 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rel=\"noreferrer noopener\">Current Affairs In Hindi<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--6\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/news-and-notifications\/\" target=\"_blank\" rel=\"noreferrer noopener\">News and Notifications<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.edunovations.quiz\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" width=\"900\" height=\"150\" src=\"https:\/\/edunovations.com\/currentaffairs\/wp-content\/uploads\/2023\/03\/Banner-current-affairs-2-1.jpg\" alt=\"Download this App for Daily Current Affairs MCQ&#039;s\" class=\"wp-image-247\" title=\"\" srcset=\"https:\/\/edunovations.com\/currentaffairs\/wp-content\/uploads\/2023\/03\/Banner-current-affairs-2-1.jpg 900w, 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Cabinet Approves \u20b91 Lakh Crore Employment\u2011Linked Incentive Scheme Background &amp; Announcement On 1 July 2025, the Union Cabinet chaired by Prime Minister Narendra Modi approved the Employment\u2011Linked Incentive (ELI) Scheme, with&#8230;<\/p>\n","protected":false},"author":6,"featured_media":35732,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,159],"tags":[19155,24451,25041,24378,802,25042,23229,25043,4140],"class_list":["post-35696","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","category-scheme_and_committees","tag-cabinet-decision","tag-current-affairs-july-2025","tag-eli-scheme-2025","tag-employment-scheme","tag-epfo","tag-formal-sector","tag-government-job-updates","tag-new-job-policy","tag-youth-employment"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/35696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/comments?post=35696"}],"version-history":[{"count":2,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/35696\/revisions"}],"predecessor-version":[{"id":35733,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/35696\/revisions\/35733"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/media\/35732"}],"wp:attachment":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/media?parent=35696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/categories?post=35696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/tags?post=35696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}