**Summary of Employment Linked Incentive (ELI) Scheme - Prime Minister Viksit Bharat Rojgar Yojna**
On July 1, 2025, the Government of India approved the Employment Linked Incentive (ELI) Scheme, named Prime Minister Viksit Bharat Rojgar Yojna, to support employment generation, enhance employability and social security coverage across all sectors, with a special focus on the manufacturing sector. The scheme aims to incentivize both first-time employees and employers for creating new jobs, by providing financial incentives to first-time employees and to employers for hiring additional workers above the baseline.
The scheme will be implemented through the Employees' Provident Fund Organisation (EPFO). It comprises two parts: Part A and Part B. Part A focuses on providing incentives for an estimated 1.92 crore first-time employees. Part B provides incentives for the creation of approximately 2.59 crore additional jobs for employers.
A key component of the scheme is the promotion of financial literacy among first-time formal sector workers. The second installment of benefits under Part A is linked to the completion of a Financial Literacy Course, covering personal finance, savings, investments, and financial planning.
The ELI scheme will improve employability among youth by facilitating sustained employment, on-the-job learning, and formal sector exposure. Incentives will be provided to all sectors for a period of 2 years. However, the manufacturing sector will receive incentives for 4 years.
Key Entities Referenced
Employment Linked Incentive ELI Scheme: A government scheme designed to help in employment generation and expansion of social security coverage.
Prime Minister Viksit Bharat Rojgar Yojna: The name of the Employment Linked Incentive ELI Scheme approved by the government to support employment generation, enhance employability and social security.
Ministry of Labour and Employment: The Indian government ministry responsible for labour and employment policies.
Employees Provident Fund Organisation EPFO: The organization through which the Employment Linked Incentive ELI Scheme is to be implemented, expanding social security coverage.
SUSHRI SHOBHA KARANDLAJE: Minister of State For Labour and Employment.
SHRI BHOJRAJ NAG: Member of Parliament who asked question related to ELI Scheme.
SHRI NALIN SOREN: Member of Parliament who asked question related to ELI Scheme.
SHRI CHHATRAPAL SINGH GANGWAR: Member of Parliament who asked question related to ELI Scheme.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 3964
TO BE ANSWERED ON 18.08.2025
BENEFITS OF ELI SCHEME
†3964. SHRI BHOJRAJ NAG:
SHRI NALIN SOREN:
SHRI CHHATRAPAL SINGH GANGWAR:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a)the manner in which Employment Linked Incentive (ELI) Scheme is
likely to help in employment generation and expansion of social
security coverage;
(b)whether the said scheme is likely to promote financial literacy among
the first time workers in the formal sector and likely to encourage the
tendency of saving among them;
(c)the details of two major components of the scheme along with the
main beneficiary groups targeted under it;
(d)the manner in which the scheme is likely to improve the employability
in the youth;
(e)whether the scheme has the provision of different incentives for
labour-intensive sectors; and
(f)if so, the details thereof?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (f): The Government on 01.07.2025 approved the Employment
Linked Incentive (ELI) Scheme named as Prime Minister Viksit Bharat
Rojgar Yojna to support employment generation, enhance employability
and social security, across all sectors, with special focus on the
manufacturing sector. It is designed to incentivize both first-time
employees and employers for creating new jobs. It aims to promote
employment generation by providing financial incentives to first-time
employees and to employers for hiring additional workers above the
baseline. Scheme is to be implemented through the Employees’
Provident Fund Organisation (EPFO), thereby expanding social security
coverage to a large number of workers.
Contd..2/-:: 2 ::
The scheme comprises of two parts i.e. Part A and Part B
and focuses on providing support to both employees and employers by
way of incentives. The scheme provides for incentives for 1.92 crore
First Timers under Part A. Incentive for creation of approx. 2.59 crore
additional jobs to employers is provided for under Part B of the scheme.
The scheme promotes financial literacy among first-time
formal sector workers by linking the second installment of benefits
under Part A to the completion of a Financial Literacy Course, covering
personal finance, savings, investments, and financial planning.
The scheme will improve employability among youth by facilitating
sustained employment, on-the-job learning, and formal sector
exposure.
The scheme will provide incentive to all sectors for 2 years.
However, for the manufacturing sector the incentive period will be 4
years.
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