Udupi: To foster employment growth and enhance social security, the Central Government, under Prime Minister Narendra Modi’s leadership, has approved the Employment Linked Incentive (ELI) Scheme. The initiative is set to roll out nationwide starting August 1, 2025, focusing on job creation, particularly in the manufacturing sector, said Shashikant Dahiya, Commissioner, Employees’ Provident Fund Organization (EPFO), Udupi.
Addressing the media at the Udupi PF office, Dahiya explained that the scheme will run for two years (2025–2027), with added incentives for employers in the manufacturing domain extending up to four years.
The ELI scheme comprises two components—one benefiting first-time job seekers, and the other rewarding employers for generating additional employment. New employees enrolled under EPFO and earning ₹15,000 to ₹1,00,000 per month will receive an incentive equal to one month’s EPF salary (up to ₹15,000) in two installments. The first half will be disbursed after six months of service, and the second after 12 months—conditional upon the completion of a financial literacy program.
Sunil Rao, Transformation Officer, stated that part of this incentive will be placed in savings instruments, encouraging financial discipline among beneficiaries. Withdrawals can be made after a set lock-in period, promoting long-term saving habits.
The scheme also provides financial incentives to employers for job creation, especially in manufacturing, further solidifying the government’s focus on employment-driven economic growth.