Employment-Linked Incentive (ELI) Scheme
The Union Cabinet approved the Employment-Linked Incentive (ELI) scheme on July 1, 2025, with a budget allocation of ₹99,446 crore. This initiative aims to bolster employment generation, focusing particularly on the manufacturing sector.
Key Features of the ELI Scheme
- First-time employees will receive one month's wage up to ₹15,000.
- Employers will be incentivized for up to two years for creating new jobs, with additional incentives for two more years in the manufacturing sector.
- The scheme applies to jobs created between August 1, 2025, and July 31, 2027.
- Eligible employees can earn up to ₹1 lakh and must complete a financial literacy program for instalment benefits.
- Employers will receive up to ₹3,000 per month for each additional employee retained for at least six months.
Government's Vision and Objectives
Prime Minister Narendra Modi emphasized the scheme's role in boosting job creation, particularly benefiting the youth. The Labor Ministry highlighted the aim to provide employment for 3.5 crore youth.
Financial Details and Coverage
- The ELI scheme is part of a broader employment and skilling initiative with a total budget outlay of ₹2 lakh crore.
- The scheme targets the creation of over 3.5 crore jobs in two years, with 1.92 crore beneficiaries being first-time job seekers.
Responses and Criticism
- Industries have positively received the scheme; however, trade unions express skepticism, viewing it as a means to funnel public funds to employers.
- Experts criticized it as deceptive and urged the working class to dismiss it.
