Employment Linked Incentive Scheme (ELI Scheme): In a big update for first time employees, Prime Minister Narendra-chaired Cabinet on Tuesday approved the proposed Employment Linked Incentive Scheme (ELI Scheme). The scheme will offer cash assistance to certain first-time employees registered with the Employee Provident Fund Organisation(EPFO).
The newly-approved scheme will also provide incentive to employers for hiring workers with salaries upto Rs 1 lakh. First-time employers registered with EPFO will get the cash incentive benefit under the direct benefit transfer. Here are all the details of newly-approved ELI Scheme.
What is ELI Scheme?
The Employee Linked Incentive (ELI) Scheme was announced by the Union Government during in May 2024. The ELI scheme will offer salary and provident fund reimbursements to eligible employers to boost job creation in the country. The scheme will also provide assistance to EPFO registered first time employers ( under a fixed salary bracket). The scheme will be rolled out with two components.
ELI Scheme Part A
Under the first component of the ELI scheme, first time employees will get cash incentives. The scheme will benefit around 1.92 crore of first time employees. Under the newly-approved ELI scheme, freshers with salaries up to Rs 1 lakh will get one-month EPF wage up to Rs 15,000 in two installments, according to Press Information Bureau (PIB) press release.
AS per the PIB update, the first installment will be payable after six months of service, and the second installment will be paid to the eligible employees after twelve months of service. These freshers are required to complete the financial literacy programme by the employee.
AS per the PIB update, the first installment will be payable after six months of service, and the second installment will be paid to the eligible employees after twelve months of service. These freshers are required to complete the financial literacy programme by the employee.
For hiring a fresher under the scheme (for a sustained employment for minimum six months), employers will get an incentive of Rs 3,000 per month for two years. As per the scheme, employers will get the benefit of the ELI scheme only after they will hire at least two additional employees (for employees with less than 50 headcount) or five additional employees (for entities with minimum 50 headcount), on a sustained basis for six months.
Source – ELI Scheme: How To Get Eligible For Rs 15,000 Benefit?
To become eligible for a maximum of Rs 15,000 incentive under the scheme, it should be the first job of the employees and they must be registered with the Employee Provident Fund Organisation (EPFO). The cash incentive offered to employees may vary on their salary and other factors. The scheme is available only for first time employees with a salary of up to Rs 1 lakh.