SCHEME ON “Employment Linked Incentive Scheme”
DearBusinessman/Investors,
In Series of KIP: Business and Subsidy Update, today we are going to share with you benefit and overview of newly approved Employment Linked Incentive Scheme named as Pradhan Mantri Viksit Bharat Rozgar Yojana.
Objective :
The Pradhan Mantri Viksit Bharat Rozgar Yojana aims to boost employment by providing incentives to both employees and employers, promoting formal workforce participation and enhancing employability The ELI Scheme is designed to boost formal job creation and help reduce reliance on informal work.
Financial Outlay of the scheme
• The total financial outlay of the scheme is limited ₹ 99,446 Crores which includes the Administrative Charges of ₹ 248 Crores.
• The Scheme shall be implemented in a fund limited manner and no liabilities shall be created after the end of the Scheme period or exhausting of the allocated funds, whichever is earlier.
• The scheme will provide incentive of up to ₹15,000 in two instalments to newly employed youth and upto 3000 per month per new employee to employers for creation of new job opportunities.
The Scheme consists of two parts with Par A focused on first timers and Part B focused on employers:
Benefits of the Scheme:
Employee: Formalization of job through expansion of social security coverage
On job training making First-timers employable
Improved employability through sustained employment Financial literacy skills
Employers: Offset cost of additional job creation
Enhancing workforce stability and
productivity Incentivize coverage of social security
To benefit from it, employees need to be registered with EPFO, have an active Universal Account Number (UAN), and ensure their Aadhaar is linked to both their UAN and bank account generated between August 1,2025 and July 31,2027.
WHO IS ELIGIBLE FOR THE ELI SCHEME :
Employee’s monthly wage must be less than ₹1 lakh. 2. Employee must be newly registered under EPFO. 3. Aadhaar must be linked to both UAN and bank account. 4. Employer must show net new job creation over their previous EPFO headcount. 5. For Scheme B, employers in manufacturing must hire at least 50 non-EPFO workers or 25% of existing workforce, whichever is lower.
Commencement and Applicability :
Effective Date of Scheme: 01.08.2025 is the Effective date from when the scheme will be applicable.
Registration Period: The registration period of the scheme will be from 01.08.2025 to 31.07.2027. All the employees joining an establishment during this period will be considered towards deciding Threshold, additionality and calculation of incentives.
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