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Aim to generate 3.5 crore jobs in two years; EPFO to play key facilitative role in scheme execution

Thenewsdose.com

Chandigarh, July 8, 2025,  UPDATED: 6:50 PM 
The Employees’ Provident Fund Organisation (EPFO), as the nodal agency for implementing the Employment Linked Incentive (ELI) scheme, will disseminate awareness about this scheme among stakeholders.  Recently, the Union Cabinet has given its approval to this scheme, effective from August 1.

The scheme, with a budget outlay of ₹99,446 crore, targets the creation of 3.5 crore new jobs over the next two years, with a special thrust on employment generation in the manufacturing sector and formalisation of the workforce.

While in a press conference held here on Tuesday, Rajiv Bisht, Additional Central Provident Fund Commissioner (PB & HP Zone), said, “EPFO is a nodal and facilitative agency working closely with stakeholders to extend the benefits of this scheme across sectors and states. The ELI Scheme is a strategic move to promote sustained job creation and bring more workers under the social security net.”

ELI Scheme Structure: Two-Pronged Strategy

Part A – Incentives for First-Time Employees

• Applies to new jobs created between August 1, 2025, and July 31, 2027.

• Offers one-time incentive equivalent to one month’s wage (up to ₹15,000).

• Covers new hires earning up to ₹1 lakh/month.

• Payouts are made in two instalments: the first after 6 months of service, and the second after a further 6 months.

• Completion of a Financial Literacy Programme is mandatory.

• It will benefit around 1.92 crore first-time employees.

Part B – Incentives for Employers

• Encourages hiring across sectors, with extra incentives for the manufacturing industry.

• The government will provide ₹1000 to ₹3,000 per month per additional employee for a period of ars.

• For manufacturing units, the incentive continues for four years.

• EPFO-registered establishments must demonstrate:

  • At least two new employees for those with <50 staff, or

  • At least five new employees for those with ≥50 staff,

  • With a minimum retention of six months.

Efficient Payment Mechanism

• Employees under Part A will receive payments via Direct Benefit Transfer (DBT).

• Employers under Part B will receive incentives in PAN-linked bank accounts to ensure transparency and accountability.

 Job and Social Security Push

The ELI scheme is part of the Central Government’s broader vision to enhance employment, improve workforce quality, and expand social security coverage nationwide. With EPFO supporting its execution, the scheme is expected to bring lakhs of informal workers into the formal fold, ensuring long-term stability and inclusive growth.