Employment Linked Incentive (ELI) Scheme — ₹15,000 to First-Time Employees and up to ₹3,000 a Month per New Hire to Employers
Video Explanation & Insights
ELI scheme: ₹15,000 for first-time employees and a monthly incentive to employers
2 videos on this topic
What the scheme pays
The Employment Linked Incentive scheme, announced in the Union Budget 2024-25 and approved by the Cabinet on 1 July 2025 with an outlay of ₹99,446 crore, aims to create over 3.5 crore jobs in two years, about 1.92 crore of them for people entering the workforce for the first time. It has two parts: an incentive to the first-time employee, and an incentive to the employer for every additional person put on the EPFO rolls. Both run on EPFO data, so registration and Aadhaar-seeded UANs are the gateway.
| Part | Beneficiary | Incentive | Conditions |
|---|---|---|---|
| Part A — first-timers | Employee registered with EPFO for the first time, salary up to ₹1 lakh a month | One month's EPF wage, up to ₹15,000, in two instalments — after 6 months and after 12 months of service | Second instalment requires completion of a financial-literacy programme; a portion is kept in a savings instrument for a fixed period; paid by DBT through Aadhaar Bridge Payment |
| Part B — employers | EPFO-registered establishments creating additional employment | Per additional employee retained for at least six months: ₹1,000 a month (EPF wage up to ₹10,000), ₹2,000 (₹10,001–₹20,000), ₹3,000 (₹20,001–₹1 lakh) | Establishments with fewer than 50 employees must add at least 2; those with 50 or more at least 5. Paid for two years; manufacturing establishments also get years 3 and 4. Credited to the employer's PAN-linked account |
Who qualifies
- •Employees: first-ever EPFO registration, wage up to ₹1 lakh a month, joining between 1 August 2025 and 31 July 2027, retained in employment for the instalment periods.
- •Employers: establishments registered with EPFO, filing ECR, adding the minimum number of new employees over the baseline headcount and retaining them for at least six months; incentive per employee is capped at the wage-slab amount.
- •Manufacturing establishments receive the employer incentive for four years instead of two.
- •MSMEs, startups and larger firms alike — the scheme is sector-neutral except for the longer manufacturing tenure.
How the money is claimed
- 1Step 1 — Establishment registered on EPFO; every new hire gets a UAN with Aadhaar seeding and an active bank account.
- 2Step 2 — Monthly ECR filed with correct wages; new joiners flagged as first-time members where applicable.
- 3Step 3 — Part A: EPFO releases the first instalment after six months of continuous service and the second after twelve months and the financial-literacy course, directly to the employee's account.
- 4Step 4 — Part B: EPFO computes the additional employment over the baseline and credits the employer's incentive to the PAN-linked account for each qualifying month.
- 5Step 5 — Maintain headcount and wage records for verification; incentives are recovered if employment is not retained as required.
ELI scheme: questions we are asked
One month's EPF wage up to ₹15,000, paid in two instalments after six and twelve months of service, for jobs joined between 1 August 2025 and 31 July 2027.
₹1,000 to ₹3,000 a month per additional employee, by wage slab, for two years — four years for manufacturing establishments.
At least two additional employees if you have fewer than 50 staff, at least five if you have 50 or more, each retained for at least six months.
Yes — employees earning up to ₹1 lakh a month qualify.
The scheme runs through EPFO records: register the establishment and employees correctly and file ECR; EPFO computes and credits the incentives.
Yes — any EPFO-registered establishment that adds qualifying employees.
EPFO registration and compliance, payroll structuring within the wage slabs, baseline and incentive computation, and tracking of the incentive window.