Context:
The Union Cabinet has approved a major employment incentive scheme titled Employment-Linked Incentive (ELI) with a total outlay of â‚ą99,446 crore, aimed at boosting job creation, especially in the manufacturing sector.
Key Features
- Objective: Encourage formal job creation by providing financial incentives to employers and first-time employees.
- Target: Creation of 3.5 crore jobs over two years (August 1, 2025 – July 31, 2027).
- Of these, 1.92 crore are projected to be first-time job entrants.
- Eligibility:
- Employees earning up to â‚ą1 lakh/month.
- Additional employees retained in jobs for at least six months.
- Incentive Structure:
- First-time employees to receive one month’s wage (up to ₹15,000).
- Employers to get incentives of up to â‚ą3,000 per month for each new job, for a two-year period.
- For jobs in the manufacturing sector, incentives extend to the third and fourth years.
