Over 3 crore jobs coming soon: Cabinet approves ELI scheme with an outlay of Rs 99,446 cr

The Union Cabinet on Tuesday cleared the Employment Linked Incentive (ELI) Scheme with a total outlay of Rs 99,446 crore to support the creation of over 3.5 crore jobs across the country over the next two years.

Briefing the media, Union Minister Ashwini Vaishnaw said the scheme will focus primarily on job creation in the manufacturing sector while extending social security to new workers. “The scheme has two parts—one for first-time employees and the second for employers who create additional sustained jobs,” he said.

The Cabinet’s decision comes months after the scheme was first announced in the Union Budget 2024-25 as part of a broader Rs 2 lakh crore employment and skilling package for youth.


Two-Part Scheme: For Employees and Employers
Part A of the scheme targets first-time entrants into the formal workforce. About 1.92 crore such workers are expected to benefit. Each eligible employee, with a monthly salary up to Rs 1 lakh, will receive one month’s wage (up to Rs 15,000) in two instalments—after six and twelve months of continuous service. The second instalment will require successful completion of a financial literacy programme. A portion of the benefit will be held in a savings instrument, promoting long-term saving habits.

Part B focuses on incentivising employers who hire additional workers. Establishments registered with EPFO must show sustained hiring—at least two new employees (if they have under 50 staff) or five new hires (if above 50 staff)—with each employee retained for at least six months.

Incentives for employers range from Rs 1,000 to Rs 3,000 per additional employee per month, depending on wage levels. For the manufacturing sector, the incentive window will extend to four years instead of two.

Rollout Timeline and Payment Mechanism
The benefits will apply to jobs created between August 1, 2025, and July 31, 2027. Payments to employees will be made via Direct Benefit Transfer (DBT) using Aadhaar-based systems, while incentives to employers will be routed through their PAN-linked accounts.

Vaishnaw added that the scheme is also expected to improve formalisation of India’s workforce by expanding EPFO coverage, especially among youth. The government hopes this will result in increased job security, steady income, and stronger social protection.

The scheme marks one of the Centre’s most ambitious moves to boost employment since the pandemic, with a clear focus on first-time workers and manufacturing-led growth.