As per the Circular released by PIB Delhi dated 1st July 2025, the Union Cabinet has approved the Employment Linked Incentive (ELI) Scheme to support employment generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector. Following are the Key focus of ELI Scheme:

• - The scheme aims to facilitate employment and skill development for 4.1 crore youth with a total budget outlay of Rs. 2 lakh crore.
• - First-time employees will get one month’s wage (up to ₹15,000/-).
• - The employers will be given incentives for a period to two years for generating additional employment, with extended benefits for another two years for the manufacturing sector.

The benefits of the Scheme would be applicable to jobs created between 1st Aug 2025 and 31st July 27. The ELI Scheme consists of two parts:

Part A- Incentive to first time employees

This part will offer 1 month EPF wage up to ₹15,000/- in two instalments. 1st Instalment will be payable after 6 months of service and 2nd instalment will be payable after 12 months of service.

Part B - Support to Employers

This part will focus on creating employment in all the sectors. The employers will get incentive for the employees whose salary is up to 1 Lakh. The Government will provide incentive to the employers up to ₹3,000 per month up to 2 years for each additional employee who has been in employment for at least 6 months. For the manufacturing industry, the incentive may be extended to the 3rd and 4th year as well.

For more details, please download the official circular or send your query to legal@ihrcgroup.com

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