News Brief

Union Cabinet Greenlights Employment Linked Incentive Scheme With Rs 1 Lakh Crore Outlay

Arzoo Yadav

Jul 01, 2025, 05:13 PM | Updated 05:14 PM IST


Union Minister Ashwini Vaishnaw.
Union Minister Ashwini Vaishnaw.

The Union Cabinet on Tuesday (1 July) approved several schemes, including the significant Employment Linked Incentive (ELI) Scheme for Rs 1.07 lakh crore. Union Minister Ashwini Vaishnaw announced these approvals during a media briefing in New Delhi, reported The Hindu.

Under this scheme, first-time employees will receive one month’s wage, up to Rs 15,000. Additionally, the government will provide incentives to employers for two years when they generate new employment, extending benefits for another two years for the manufacturing sector.

The Union Budget 2024–25 originally announced the ELI Scheme to boost formal employment. It offers financial support to both employers and first-time employees. To access these benefits, employees need to enroll in EPFO and fulfill Aadhaar-bank seeding requirements.

With an outlay of Rs 99,446 Crore, the ELI Scheme aims to facilitate the creation of over 3.5 Crore jobs nationwide within two years. Of these, 1.92 Crore beneficiaries will be individuals entering the workforce for the first time. The scheme will apply to jobs created between 1 August, 2025 and 31 July, 2027.

Vaishnaw explained that with the ELI Scheme, the government intends to drive job creation, particularly in the manufacturing sector, besides incentivising people entering the workforce for the first time.


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