Rs 99,446-crore scheme to incentivise creation of over 3.5 cr jobs: PF official

The recently launched employment linked incentive (ELI) scheme, approved by the Union Cabinet, has a total outlay of Rs 99,446 crore and it aims to incentivise the creation of over 3.5 crore jobs in the country over a period of two years.

This was disclosed by Rajiv Bisht, Additional Central Provident Fund Commissioner (Punjab and Himachal Pradesh zone) here today. He was on a visit to the Employees’ Provident Fund Organisation (EPFO) zonal office to provide insights and raise awareness about the ELI.

Flanked by Regional Provident Fund Commissioners Amit Singla and Ritesh Saini, Bisht informed that the ELI scheme was an initiative aimed at boosting employment generation, improving employability and extending social security coverage, with a special focus on the manufacturing sector. The scheme was designed to support both new entrants to the workforce and employers who create additional jobs.

He further explained that the scheme was structured in two parts. For first-time employees, the benefits of the scheme would be applicable to jobs created between August 1, 2025, and July 31, 2027. A financial incentive equal to one month’s wage (up to Rs 15,000) will be paid. The employees with salaries up to Rs 1 lakh will be eligible under the scheme. The first installment will be payable after six months of service and the second installment after 12 months of service.

“Important condition for availing the benefits is completion of a financial literacy programme by the employee,” he said, while divulging that it will benefit around 1.92 crore first-time employees.

Part B for support to employers will cover generation of additional employment in all sectors, with a special focus on the manufacturing sector.

The government will incentivise employers, up to Rs 3,000 per month, for two years, for each additional employee with sustained employment for at least six months. For the manufacturing sector, incentives will be extended to the third and fourth year as well.

Establishments, which are registered with the EPFO, will be required to hire at least two additional employees (for employers with less than 50 employees) or at least five additional employees (for employers with 50 or more employees) on a sustained basis for at least six months.

All payments to first-time employees under part A will be disbursed through direct benefit transfer (DBT) while payments to employers under part B will be directly credited to their PAN-linked bank accounts, ensuring transparency and efficiency.

Bisht said the scheme was part of the government’s broader vision to formalise the country’s workforce, thereby extending social security coverage to crores of young men and women across India.

Chandigarh