The Union Cabinet, has approved the Employment Linked Incentive (“ELI”) Scheme, as announced in the Union Budget 2024-25. The Scheme offers incentives to both first-time employees and employers hiring additional workers.
Employers hiring new employees with salaries up to ₹1 lakh/month will receive monthly incentives for each additional employee retained for at least 6 months. The benefits of the Scheme would be applicable to jobs created between 01 August 2025 and 31 July 2027. The incentive structure is as follows:
- Up to ₹10,000 EPF wage: Up to ₹1,000/month
- ₹10,001 – ₹20,000 EPF wage: ₹2,000/month
- ₹20,001 – ₹1,00,000 EPF wage: ₹3,000/month
For the manufacturing sector, these incentives will be extended to the 3rd and 4th years as well. To qualify:
- Establishments with fewer than 50 employees must hire at least 2 new employees for at least 6 months
- Establishments with 50 or more employees must hire at least 5 new employees for at least 6 months
Source: Employees’ Provident Fund Organisation
