In a major push for job creation, the Indian government has approved a big employment scheme under the Union Budget 2024–25. The Cabinet on Tuesday gave the green signal to the Employment Linked Incentive, ELI Scheme, which is expected to generate over 3.5 crore jobs in India between August 2025 and July 2027. The total fund allocated for the scheme is ₹99,446 crore.
This new scheme mainly focuses on encouraging hiring, giving support to first-time workers, and increasing the formal workforce across various sectors. A large part of the jobs is expected to come from the manufacturing sector, where demand for workers is always high.
As per the official release, around 1.9 crore of the total job beneficiaries will be freshers—people who will enter the formal job market for the first time. To support them, the government will provide financial assistance equal to one month’s EPF wage, up to ₹15,000. This support will be given in two parts: the first part after six months of continuous work, and the second after one year of service, along with the completion of a financial literacy course.
The ELI scheme also offers attractive benefits to employers. To qualify, companies with less than 50 staff must hire at least two new workers. Those with 50 or more must bring in at least five new employees and retain them for six months. Depending on the EPF wage of these new employees, companies will receive an incentive between ₹1,000 and ₹3,000 per employee every month.
These incentives will be applicable to all sectors for two years. However, for manufacturing companies, the benefits will be available for four years, showing the government’s focus on boosting the Make in India mission.
The government expects this effort to help in two major ways: one, by giving lakhs of youth formal employment, and two, by widening the reach of social security schemes like EPF. Many young people working in unorganised jobs without job security may now get a chance to enter the formal sector with benefits like insurance, retirement savings, and job stability.
With the first official labour survey already showing a 5.1% unemployment rate in April 2025, this scheme is seen as timely and impactful. It’s not just about numbers—it’s about changing lives and giving lakhs of families a stable future. The government hopes this move will help formalise the workforce and give a big boost to the economy through increased participation and better worker benefits.
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