Ashwini Vaishnaw Announces Details Of Govt’s Job-Linked Incentive Plan; Details Inside
The Union Minister Ashwini Vaishnaw announced four significant decisions aimed at boosting employment, innovation, infrastructure, and sports development in a cabinet briefing held on Tuesday. These include the approval of an Employment Linked Incentive scheme, a Research, Development and Innovation Programme, the much-anticipated National Sports Policy, and the four-laning of the Paramakudi–Ramanathapuram section of the National Highway in Tamil Nadu — a move that fulfills a long-pending demand of the coastal region. The upgraded highway is expected to greatly enhance connectivity to the Pamban Bridge and support regional growth.
He said, "...The focus of Employment Linked Incentive Scheme will be on the manufacturing sector. It has two parts; part one is for first timers and part two for support to sustained employment..."
“The ELI Scheme is a strategic effort to stimulate employment across all sectors, particularly in manufacturing, and encourage youth to join the formal workforce,” Vaishnaw added.
Vaishnaw said that the announced ELI Scheme has a financial outlay of Rs 1.07 lakh crore. The initiative aims to generate over 3.5 crore formal jobs across sectors over a two-year period, with special emphasis on incentivizing new workforce entrants and supporting employers.
As part of the scheme, first-time employees will receive a one-month wage incentive (up to Rs 15,000), while employers hiring them will be eligible for financial benefits for two years. For the manufacturing sector, these incentives can be extended by another two years.
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About The ELI Scheme
The ELI Scheme, first introduced in the Union Budget 2024–25, is designed to foster formal employment by offering monetary support to both employers and new employees. To qualify, beneficiaries must be enrolled in the Employees' Provident Fund Organisation (EPFO) and comply with Aadhaar and bank account seeding requirements.
With Rs 99,446 crore earmarked for the scheme, it aims to bring 1.92 crore first-time employees into the workforce. The scheme will cover jobs created between August 1, 2025, and July 31, 2027.
In addition to the ELI Scheme, the Cabinet also approved three other major decisions: the National Sports Policy 2025, the Research Development and Innovation Scheme, and the four-laning of the Paramakudi–Ramanathapuram National Highway. The highway upgrade addresses a long-standing demand from Tamil Nadu’s coastal region and will improve connectivity to the Pamban Bridge.
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