**Summary:**
The Ministry of Labour and Employment, Government of India, has approved an Employment Linked Incentive Scheme with a budgetary outlay of Rs 99,446 crore. This scheme aims to support employment generation, primarily in the manufacturing sector. The registration period for the scheme is two years, from August 1, 2025, to July 31, 2027. The scheme comprises two parts: Part A offers incentives up to Rs 15,000 (in two installments) equivalent to one month's EPF wage for first-time employees, subject to eligibility criteria. Part B provides incentives up to Rs 3,000 per month per employee for creating additional employment sustained for at least six months, also subject to eligibility criteria outlined in the scheme guidelines. The scheme's formulation involved extensive consultations with various stakeholders, including Ministries, Trade Unions, Industry Associations, and Experts.
Key Entities Referenced
Ministry of Labour and Employment: The Indian government ministry responsible for labour and employment policies.
Employment Linked Incentive Scheme: A government scheme approved with a budgetary outlay of Rs 99,446 crore to support employment generation.
Rs. 99,446 crore: The total budgetary allocation for the Employment Linked Incentive Scheme.
Manufacturing Sector: The primary sector targeted for employment generation under the Employment Linked Incentive Scheme.
August 1, 2025: The start date for the applicability of benefits under the Employment Linked Incentive Scheme.
July 31, 2027: The end date for the applicability of benefits and the registration period under the Employment Linked Incentive Scheme.
Trade Unions: Organizations consulted during the formulation of the Employment Linked Incentive Scheme.
SUSHRI SHOBHA KARANDLAJE: Minister of State for Labour and Employment
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 80
TO BE ANSWERED ON 21.07.2025
EMPLOYMENT LINKED INCENTIVE SCHEME
80. SHRI SELVAGANAPATHI T.M.:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:
(a)whether it is a fact that the Government has approved an Employment
Linked Incentive scheme with an allocation of Rs. 99,446 crore to
support employment generation, primarily in the manufacturing sector;
(b)if so, the details thereof;
(c)whether it is also true that the benefits of the scheme will be applicable
to jobs created between August 1, 2025 and July 31, 2027 and if so, the
details thereof;
(d)whether the Government has made any consultations with the Trade
Unions prior to launch of the said scheme and received any suggestions
from them; and
(e)if so, the details thereof?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (e): The Government has approved Employment Linked Incentive
Scheme at a budgetary outlay of Rs 99,446 crore.
The scheme has a registration period of two years from
01.08.2025 to 31.07.2027.
The Scheme has following two parts:
Part A: Under this part, as per eligibility criteria of the scheme guidelines,
first timer shall be paid incentive equivalent to one completed month EPF
wage, subject to a maximum of Rs 15000/- in two installments.
Part B: Under this Part, incentive upto a maximum of Rs 3000/- per.month
per employee will be provided for creation of additional employment for a
sustained period of at least six months subject to eligibility criteria as
described in the Scheme guidelines..
The scheme was formulated after extensive consultations
with all stakeholders including Ministries, Trade Unions, Industry
Associations and Experts.
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