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Union Cabinet approves Employment Linked Incentive scheme | Current Affairs | Vision IAS

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Union Cabinet approves Employment Linked Incentive scheme

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Employment Linked Incentive (ELI) Scheme

The Union Government Cabinet has approved the Employment Linked Incentive (ELI) Scheme with the aim of boosting employment and providing financial benefits to both employees and employers.

Key Details

  • The scheme targets newly registering employees earning less than ₹1 lakh in wages.
  • Employers and employees must register and the employees must be retained for at least 6 months to avail the benefits.

Objective

  • Create 3.5 crore jobs over two years, from August 2025 to July 2027.
  • Total budget allocated for the scheme is ₹99.45 crore.

Benefits for New Employees

  • Eligible to earn up to ₹15,000 in two instalments over one year.

Benefits for Employers

  • Employers receive ₹3,000 per month for two years.
  • For the manufacturing sector, the benefit extends to four years.

Payment Method

  • Benefits are disbursed through Direct Benefit Transfer (DBT) to Aadhaar/PAN linked bank accounts.
  • Tags :
  • Employment Linked Incentive (ELI) Scheme
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