Employment Linked Incentive Scheme
Unlock new career opportunities with the Employment Linked Incentive Scheme 2025–27! This government initiative rewards both first-time employees and employers, offering cash incentives up to ₹15,000 for fresh hires and up to ₹3,000/month
In this article:
Employment Linked Incentive Scheme: Employment Linked Incentive Scheme, launched by the government in 2025, is a big push towards job creation and formalisation of workforce in India. This scheme is designed specially for youth, fresh graduates, employers, and manufacturing sector businesses. It aims to link every new formal job with incentives for both employees and employers.
ELI Scheme Kya Hai?
ELI Scheme is a central government initiative to promote large-scale hiring by providing financial incentives for both first-time employees and businesses who expand their workforce.
How ELI Scheme Works?
New employee joins company under EPFO registration
Employee receives up to ₹15,000 incentive (paid in two installments after staying for 6 and 12 months)
Employers get up to ₹3,000 each month for every additional employee they hire, for two years (extended to 4 years for manufacturing)
Scheme covers jobs created between 1 August 2025 and 31 July 2027
Employment Linked Incentive Scheme Benefits and Eligibility
Benefits:
First-Time Employees get one-month EPF wage up to ₹15,000 direct benefit transfer
EPFO registration is compulsory for eligibility
Incentive paid in two parts: 1st after 6 months of service, 2nd after 12 months & passing financial literacy program
Maximum monthly salary for eligibility: ₹1 lakh
Employer Benefits
Employers with EPFO registration hiring additional workforce get incentive per new employee
₹3,000 per employee per month for salaries up to ₹1 lakh
Manufacturing sector gets extended benefit for 4 years
Must retain increased workforce for at least 6 months
ELI Scheme Structure and Payment Details
Salary Slab | Employer Incentive Monthly |
|---|---|
Up to ₹10,000 | ₹1,000 |
₹10,001 – ₹20,000 | ₹2,000 |
₹20,001 – ₹1,00,000 | ₹3,000 |
Payment Mechanism
Employees: Incentive via Direct Benefit Transfer using Aadhaar-linked account
Employers: Incentive paid to PAN-linked company account
Both employee and employer must maintain EPFO compliance, keep records updated
Employment Linked Incentive Scheme How To Apply Online
Applying is simple:
Employer and employee must be registered with EPFO
Aadhaar & PAN linking necessary
Employer to show increase in workforce, retain staff for minimum 6 months
Financial literacy program must be completed by employee to receive final installment
Employment Linked Incentive Scheme Manufacturing Sector Special Incentive
Manufacturing sector gets enhanced incentives:
Up to 4 years incentive per new hire
Supports job creation in factories, industrial units, textile, auto, pharma, consumer electronics etc.
Focus on “Make in India”, factory jobs, plant workforce expansion
Common Mistakes and Tips for Success
Don’t forget to:
Link Aadhaar and bank account before registration
Maintain proper employee records for at least six months
Small companies can also avail—don’t think scheme just for big business
Financial literacy training is must for employees to get second part of incentive
EPFO UAN linking regularly needed for successful payments
Why ELI Scheme Matters
This scheme is helping lakhs of youth, fresh graduates, and small businesses enter formal jobs with extra government support. With all payments through Aadhaar and PAN linked accounts, the whole process is transparent and secure. Employers save on salary costs, employees earn incentive and join social security net.
Candidates can check