ELI Scheme Latest News: New Delhi, July 1, 2025: In a game-changing move for India’s youth, the Union Cabinet has rolled out a massive ₹1 lakh crore ELI Scheme (Employment-Linked Incentive), set to spark the creation of over 3.5 crore jobs in the next two years. Announced as part of the Union Budget 2024-25, this ambitious plan aims to empower young workers and energize the job market, with a special focus on manufacturing.
“This is more than just a scheme—it’s a lifeline for millions of young Indians stepping into the workforce,” said Union Minister Ashwini Vaishnaw during a Cabinet briefing. “We’ve worked hard since the last Budget to craft a plan that not only creates jobs but also builds a stronger, more secure future for our youth.”
A Helping Hand for New Workers
The ELI scheme is designed to give first-time employees a warm welcome to the formal job market. If you’re new to the workforce and registered with the Employees’ Provident Fund Organisation (EPFO), you’re in for a treat: a one-month wage subsidy of up to ₹15,000, paid in two instalments. The first chunk comes after six months of work, and the second after a year, provided you complete a financial literacy course to help you manage your money smarter.
To encourage saving, part of this incentive will be tucked away in a savings account for a fixed period, ready for you to access later. This part of the scheme, called Part A, is expected to support 1.92 crore first-time workers entering jobs between August 1, 2025, and July 31, 2027.
Employers Get a Push Too
The scheme’s Part B is all about motivating businesses to hire more people. Employers who bring in additional workers earning up to ₹1 lakh per month can receive up to ₹3,000 per month per new hire for two years. For those in the manufacturing sector, the perks extend even further—up to four years of incentives. Smaller businesses with fewer than 50 employees need to hire at least two extra workers, while larger ones with 50 or more must add at least five to qualify.
This employer-focused push is projected to create nearly 2.6 crore new jobs, with special incentives for lower-wage workers (up to ₹10,000 EPF wage) to ensure inclusivity. Payments to employees will flow through Aadhaar-linked Direct Benefit Transfer (DBT), while employers will see funds credited to their PAN-linked accounts.
Why It Matters
With a budget of ₹99,446 crore, the ELI scheme is a cornerstone of the government’s broader ₹2 lakh crore plan to boost employment and skills for 4.1 crore young Indians. By focusing on manufacturing and formalizing the workforce, it aims to create not just jobs but also social security and stability for millions. “This is about giving our youth a chance to shine and businesses the support to grow,” Vaishnaw added.
As India gears up for this employment revolution, the question is: Will this scheme transform the job landscape as promised? With the clock ticking toward August 2025, all eyes are on how this bold move plays out.
