New Delhi | July 22, 2025 – The Union Cabinet, chaired by Prime Minister Narendra Modi, has sanctioned the Employment Linked Incentive (ELI) Scheme, aiming to generate over 3.5 crore formal jobs between August 1, 2025, and July 31, 2027, with a total allocation of ₹99,446 crore .

The ELI scheme comprises:
- Part A: Benefits for First-Time Employees
Eligible individuals registered with the Employees’ Provident Fund Organisation (EPFO) will receive up to ₹15,000 in two DBT instalments, based on wage slab and completion of a financial literacy module. - Part B: Incentives to Employers
Employers who hire additional staff and retain them for six months will receive ₹1,000–3,000/month per employee for two years. Manufacturing units get benefits extended to four years.
The scheme emphasizes manufacturing, offering extended subsidies for that sector.
🎯 Target and Impact
- Create 3.5 crore jobs over two years
- Support 1.92 crore first-time job entrants
- Encourage formal employment and social security coverage .
- Boost youth employment amid rising youth unemployment (urban: 17.9%, rural: 13.7%).
🗣️ Expert Endorsements & Awareness Drives
- Bhagalpur EPFO initiated awareness efforts across 14 districts to ensure smooth scheme adoption.
- Labour Secretary Vandana Gurnani urged Global Capability Centres (GCCs) to actively participate and boost job creation.
🗓️ Timeline & Operational Notes
- Effective 01 Aug 2025 to 31 Jul 2027
- Payments made via DBT (Aadhaar) for employees and PAN-linked accounts for employers.
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