Cabinet approves ₹99,446-crore Employment Linked Incentive Scheme to create 3.5 crore jobs
On 1 July 2025 in New Delhi, the Union Cabinet approved the Employment Linked Incentive (ELI) Scheme with an outlay of ₹99,446 crore, aiming to incentivise more than 3.5 crore jobs over two years.
Summary
The Union Cabinet chaired by Prime Minister Narendra Modi approved the Employment Linked Incentive (ELI) Scheme on 1 July 2025 with an outlay of ₹99,446 crore, aiming to incentivise creation of more than 3.5 crore jobs over two years, of which 1.92 crore beneficiaries will be first-timers. Part A gives first-time EPFO-registered employees one month's EPF wage up to ₹15,000 in two instalments; Part B gives employers up to ₹3,000 per month for two years for each additional employee, extended to the third and fourth years for manufacturing. Benefits apply to jobs created between 1 August 2025 and 31 July 2027. The scheme was announced in the Union Budget 2024-25 as part of the PM's package of five schemes for 4.1 crore youth with a total outlay of ₹2 lakh crore (static).
Key facts
- Outlay
- ₹99,446 crore
- Target
- 3.5 crore+ jobs over 2 years; 1.92 crore first-timers
- Part A
- First-time employees: one month's EPF wage up to ₹15,000 in two instalments
- Part B
- Employers: up to ₹3,000/month per additional employee for 2 years (4 years for manufacturing)
- Window
- Jobs created 1 August 2025 â 31 July 2027
- Origin (static)
- Union Budget 2024-25; PM's package of five schemes, ₹2 lakh crore, 4.1 crore youth
Practice MCQs 4 questions
What is the outlay of the Employment Linked Incentive (ELI) Scheme approved by the Cabinet on 1 July 2025?
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Correct answer: A â ₹99,446 crore
Cabinet: with an outlay of ₹99,446 crore, the ELI Scheme aims to incentivize the creation of more than 3.5 crore jobs over 2 years.
Under Part A of the ELI Scheme, first-time employees get one month's EPF wage up to what amount?
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Correct answer: C â ₹15,000
Cabinet: Part A offers first-time employees registered with EPFO one-month EPF wage up to ₹15,000 in two instalments.
ELI Scheme benefits apply to jobs created during which period?
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Correct answer: D â 1 August 2025 â 31 July 2027
Cabinet: the benefits of the Scheme would be applicable to jobs created between 1 August 2025 and 31 July 2027.
Consider the following about the ELI Scheme (July 2025): 1. It was announced in the Union Budget 2024-25 as part of the PM's package of five schemes. 2. For the manufacturing sector, employer incentives extend to the third and fourth years. 3. Employers get up to ₹15,000 per month for each additional employee. Which of the statements given above is/are correct?
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Correct answer: B â 1 and 2 only
Statements 1 and 2 are correct (Cabinet). Statement 3 is wrong: employers get up to ₹3,000 per month per additional employee; ₹15,000 is the cap on the one-month EPF wage for first-time employees.