Under the ELI scheme, first-time employees registered with the Employees’ Provident Fund Organisation (EPFO) will receive one month’s wage, up to ₹15,000, in two installments.
The government will also incentivise employers for hiring and retaining additional workers.
Key benefits for first-time employees
Part A of the scheme targets nearly 1.92 crore individuals entering the workforce for the first time. Eligible workers with salaries up to ₹1 lakh will receive:
- The first instalment after six months of continuous service
- The second installment after completing one year and attending a financial literacy program
- A portion of the amount will be deposited in a savings account, which can be accessed later
Support to employers
Part B of the scheme offers incentives to employers across all sectors, especially manufacturing. Incentives will be paid for each new employee retained for at least six months, based on the following wage slabs:
| EPF Wage Slab (per month) | Incentive per employee per month |
| Up to ₹10,000 | Up to ₹1,000 |
| ₹10,001 – ₹20,000 | ₹ 2,000 |
| ₹20,001 – ₹1,00,000 | ₹ 3,000 |
Employers must hire at least two additional workers (if they have less than 50 employees) or five (if they have 50 or more). The incentive will be provided for two years, and for the manufacturing sector, extended to the third and fourth years.
This component is expected to help generate around 2.6 crore new jobs.
Payment mechanism
The government will credit funds directly to employees and employers:
- First-time employees will receive funds via Direct Benefit Transfer (DBT) through the Aadhaar Bridge Payment System
- Employers will receive incentives in their PAN-linked bank accounts
The ELI scheme was first announced in the Union Budget 2024-25 as part of the Prime Minister’s employment and skilling initiative for 4.1 crore youth, backed by a total package of ₹2 lakh crore.
