Union Cabinet approves Employment Linked Incentive Scheme

The Union Cabinet on Tuesday (July 1, 2025) approved various schemes including Employment Linked Incentive Scheme, Union Minister Ashwini Vaishnaw said in a media briefing in New Delhi.

While addressing a press conference, Union MInister Ashwini Vaishnaw announced that the approval of Employment Linked Incentive Scheme for ₹1.07 lakh crore.

Under the Scheme, while the first-time employees will get one month’s wage (up to ₹15,000), the employers will be given incentives for a period to two years for generating additional employment, with extended benefits for another two years for the manufacturing sector.

The Employment Linked Incentive (ELI) Scheme was announced in the Union Budget 2024–25 to generate formal employment by offering financial support to both employers and first-time employees. To avail the benefits, employees must enrol in EPFO and meet Aadhaar-bank seeding requirements.

With an outlay of ₹99,446 Crore, the ELI Scheme aims to incentivize the creation of more than 3.5 Crore jobs in the country, over a period of 2 years. Out of these, 1.92 Crore beneficiaries will be first timers, entering the workforce. The benefits of the Scheme would be applicable to jobs created between August 1, 2025 and July, 31, 2027.

With ELI Scheme, the government intends to catalyse job creation in all sectors, particularly in manufacturing sector, besides incentivizing youth joining the workforce for the first time, Mr. Vaishnaw said.

Mr. Vaishnaw also said that Union Cabinet approved National Sports Policy 2025, Research Development and Innovation scheme, and four laning of Paramakudi-Ramanathapuram national highway.