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Cabinet Approves ₹99,446 Crore ELI Scheme to Create 3.5 Crore Jobs Over Two Years.

Goverment Scheme | Dated: 01 Jul 2025

On July 1, 2025, the Union Cabinet, chaired by PM Narendra Modi, approved the Employment‑Linked Incentive (ELI) Scheme—a ₹99,446 crore initiative aimed at creating over 3.5 crore formal jobs between August 2025 and July 2027, through direct incentives for first‑time hires and employers.

🎯 Key Highlights:

  • - The scheme offers a one‑month EPF wage subsidy (up to ₹15,000)—distributed in two parts—to first‑time employees registered via EPFO earning up to ₹1 lakh/month. Eligibility is tracked through the EPFO database, and includes a mandatory financial literacy module for releasing the second installment .
  • - Employers also receive monthly incentives (₹1,000–₹3,000) per new employee retained for at least six months. Under this framework, manufacturing firms hiring additional staff can claim these incentives for up to four years, while other sectors are covered for two years.
  • - The scheme prominently targets young first‑time workers, aiming to bring 1.92 crore new entrants into formal employment via EPFO registration. It is expected to formalize jobs previously outside the social security net.

💡 Other Important Facts:

  • (i) A special feature ensures digital transparency: subsidies to employees and employers will be disbursed through Aadhaar‑linked DBT and EPFO/PAN accounts, minimizing leakages and ensuring accountability.
  • (ii) Labor Minister Bhupender Yadav (MoLE) clarified that employee subsidies apply to first-time jobholders, identified via EPFO data, while employers must meet hiring criteria—minimum two for micro‑firms, five for larger units—with wage and retention norms verified digitally.
  • (iii) The ELI scheme aligns with the Union Budget 2024–25 employment package, complementing initiatives by MSDE and MoLE. It also forms part of a broader strategy to skilling and formalisation, alongside RDI and National Sports Policy—all approved in the same Cabinet session.

📚 Test Your Knowledge:

The Union Cabinet recently approved the ELI Scheme with an outlay of how much to create 3.5 crore jobs?

Correct Answer: ₹99,446 crore

🚀 Quick Recap: