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Employment-Linked Incentive (ELI) Scheme

02 Jul 2025 GS 2 Governance
Employment-Linked Incentive (ELI) Scheme Click to view full image

Context: The Union Cabinet has approved an Employment-Linked Incentive (ELI) Scheme with an outlay of ₹99,446 crore, aimed at generating over 3.5 crore jobs—mainly in the manufacturing sector—over two years (August 1, 2025 to July 31, 2027).

Key features:

  • First-time employees (up to ₹1 lakh/month salary) will get one month’s wage (up to ₹15,000).

  • Employers will receive ₹3,000/month per additional employee for 2 years, extended to 4 years for the manufacturing sector.

  • Part of a broader ₹2 lakh crore youth employment package from Budget 2024–25.

  • Aims to benefit 1.92 crore first-time workers.

While the industry has welcomed the move, trade unions like CITU have criticized it as a transfer of public funds to employers under the guise of job creation.



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