India’s Finance Minister, Nirmala Sitharaman, had announced a major employment scheme for the country’s unemployed youth during the Union Budget 2024–2025 session. The Government of India has now officially launched this scheme under the name Employment-Linked Incentive (ELI) Scheme 2025. On July 1, the Cabinet approved this initiative aimed at boosting employment opportunities and encouraging companies to hire more workers. With this, the government has launched one of its largest job-creation programs ever, targeting the generation of 3.5 crore formal jobs over the next two years.
Through this article, we bring you all the essential information about the scheme — including eligibility, benefits, application process, and required documents.
What is Employment-Linked Incentive (ELI) Scheme 2025?
The Employment-Linked Incentive (ELI) Scheme 2025 is a new employment promotion initiative by the Government of India. Its objective is to create and promote formal employment across the country. Under this scheme, the government provides financial assistance to both youth entering formal jobs and companies hiring new workers.
The scheme will be implemented from 1st August 2025 to 31st July 2027, with a goal to bring more than 3.5 crore youth into permanent and socially secure jobs.
Key Objectives of Employment-Linked Incentive (ELI) Scheme 2025:
- Promote formal employment – Connect youth with EPFO (Employees’ Provident Fund Organisation) for secure, structured jobs.
- Encourage companies to hire more employees – Companies will receive Rs 1,000 to Rs 3,000 per new employee per month.
- Make youth financially independent – First-time job seekers will receive financial support of up to Rs 15,000.
- Promote financial literacy – Beneficiaries must complete a Financial Literacy Course to receive full benefits.
- Expand EPFO coverage and strengthen social security – Help youth access PF, pension, and insurance.
- Accelerate industrial and economic growth – Increased hiring will boost production and India’s GDP.
In short, the ELI scheme aims to: create jobs + expand social security + incentivize companies to build a stronger workforce.
Employment-Linked Incentive (ELI) Scheme 2025 Focused On?
The ELI Scheme 2025 primarily targets two major groups:
- Youth entering the formal workforce for the first time:
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- Includes rural unemployed youth, economically weaker students, urban poor, migrant workers, and women.
- Beneficiaries must be linked to EPFO for the first time, with a salary of up to Rs 1 lakh/month.
- Financial aid of up to Rs 15,000 will be given to help them become self-reliant.
- EPFO-registered employers and companies:
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- Especially MSMEs and industries looking to hire but hesitant due to wage costs.
- These companies will receive Rs 1,000–3,000/month per new hire.
- Focus areas: manufacturing, services, and technology sectors.
Structure of Employment-Linked Incentive (ELI) Scheme 2025
Part A: Benefits for Employees
- Youth joining EPFO for the first time and earning up to Rs 1 lakh/month will be eligible.
- Payment in two phases:
- Rs 7,500 after 6 months of continuous employment
- Rs 7,500 after 12 months + completion of a certified Financial Literacy Course
- Amount will be transferred via DBT (Direct Benefit Transfer) to the beneficiary’s Aadhaar-linked bank account.
- Some amount may be locked into savings/investment accounts to promote long-term financial stability.
Part B: Benefits for Employers
| Monthly Salary Range | Incentive per Employee per Month |
|---|---|
| Up to Rs 10,000 | Rs 1,000 |
| Rs 10,001 to Rs 20,000 | Rs 2,000 |
| Rs 20,001 to Rs 1,00,000 | Rs 3,000 |
- Companies with fewer than 50 employees must hire at least 2 new workers.
- Companies with 50 or more employees must hire 5 or more new workers.
- Incentive will be paid only if new hires remain employed for at least 6 months.
- Duration: 4 years for manufacturing sector; 2 years for others.
When and How Will the Money Be Paid?
For Employees:
- After 6 months of employment → Rs 7,500
- After 12 months + financial literacy course → Rs 7,500
- Total Support → Rs 15,000 (paid via DBT to bank account)
For Employers:
- Must meet minimum hiring targets
- Payment of Rs 1,000–3,000 per eligible new employee
- Paid monthly upon verification and fulfillment of conditions
Employment-Linked Incentive (ELI) Scheme 2025 Required Documents :
For Employees:
- Aadhaar Card
- Bank Passbook (Aadhaar-linked account)
- UAN (EPFO ID)
- Mobile Number
- Financial Literacy Course Certificate (after 12 months)
For Employers:
- EPFO Registration Certificate
- Bank account linked to PAN
- Details of new employees hired
- Attendance and salary records
Employment-Linked Incentive (ELI) Scheme 2025 Application Process :
For Employees:
- Get employed by an EPFO-registered company
- Obtain your UAN and link it with Aadhaar and bank account
- Stay employed for 6 and then 12 months
- Complete the approved Financial Literacy Course
- Receive Rs 15,000 in two phases via DBT
For Employers:
- Log in to the EPFO portal
- Upload details of new hires
- Fulfill all eligibility conditions
- Receive monthly incentive transfers post-verification
Final Conclusion:
The ELI Scheme 2025 is one of India’s most ambitious employment generation programs. It aims to reduce unemployment, boost formal workforce participation, and support companies in expanding their teams. With direct financial aid to both employees and employers, it promises a stronger, more secure economic future for India’s youth.
Employment-Linked Incentive (ELI) Scheme 2025 – Important Links :
- All Jobs Update Link : Click Here
- EPFO Website Link : Click Here
Employment-Linked Incentive (ELI) Scheme 2025 – FAQs
Q1. What is the ELI Scheme?
It’s a government scheme offering ₹15,000 incentive to youth on getting their first salaried job.
Q2. Who is eligible?
Youth aged 18–35 years with first-time salaried employment and an active UAN (EPFO account).
Q3. How is the incentive paid?
In two installments — after 6 months and 12 months of continuous job.
Q4. Is it DBT-based?
Yes, the amount is sent directly to the beneficiary’s Aadhaar-linked bank account.
Q5. How to apply?
Apply via the EPFO portal with UAN, Aadhaar, job proof, and bank details.
Q6. Which jobs are valid?
Only formal EPFO-registered salaried jobs are eligible.
Q7. Are documents needed?
Yes – Aadhaar, PAN, bank passbook, appointment letter, UAN proof.