**Summary:**
This document summarizes the Indian Ministry of Labour and Employment's response to Lok Sabha Unstarred Question No. 1165, addressed on July 28, 2025, regarding the role of the Employees' Provident Fund Organisation (EPFO) in the Employment Linked Incentive (ELI) Scheme.
The response clarifies that assigning the ELI Scheme to the EPFO does not compromise its role in protecting employees' savings. The ELI Scheme is a central sector scheme entirely funded by the Government of India. Employee Provident Fund savings will not be used, directly or indirectly, for this scheme. Incentives under Part A of the scheme are disbursed directly to the first-time employee's Aadhaar-seeded bank account via the Aadhaar Bridge Payment System. Under Part B, incentives are directly deposited into the PAN-linked bank account of the establishment/employer.
The response also addresses concerns regarding potential misuse, referencing past issues with the Production Linked Incentive (PLI) Scheme of 2020. To ensure effective implementation and monitoring, the government has established a steering committee with representation from various labor-intensive Ministries/Departments.
Key Entities Referenced
Ministry of Labour and Employment: A ministry within the Government of India responsible for labour and employment-related policies and regulations.
Lok Sabha: The lower house of the Parliament of India, where questions are addressed to ministers.
SHRI SHYAMKUMAR DAULAT BARVE: A member of Lok Sabha who raised a question about the role of EPFO in the ELI scheme.
Employees' Provident Fund Organisation (EPFO): An organization responsible for managing provident fund and pension schemes for employees in India.
Employment Linked Incentives (ELI) Scheme: A government scheme where incentives are linked to employment generation, implemented by the EPFO.
Employee Provident Fund (EPF): A savings fund for employees, managed by EPFO.
Production Linked Incentive (PLI) Scheme of 2020: A government scheme to give companies incentives for increased domestic production
SUSHRI SHOBHA KARANDLAJE: Minister of State for Labour and Employment who provided the answer to the question.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 1165
TO BE ANSWERED ON 28.07.2025
ROLE OF EPFO IN ELI SCHEME
†1165. SHRI SHYAMKUMAR DAULAT BARVE:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a)whether giving the responsibility of Employment Linked Incentives
(ELI) Scheme to the EPFO is a deviation from its protector role of
employees savings and if so, the details thereof;
(b)whether the Government guarantees that EPF Savings of
Employees will not be directly or indirectly used under this scheme
and if so, the details thereof;
(c)whether some companies misused these savings in Production
linked Incentive (PLI) Scheme of 2020 even after the warnings by
labour organizations and later on EPFO had to exclude them from
the scheme; and
(d)whether the Government is considering to establish independent
monitoring system to check any potential misuse or lack of
transparency in implementation of the scheme by EPFO?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (c): No, there is no impact on the fiduciary role of EPFO in
being given the responsibility of implementing the ELI Scheme.
Further, ELI is a central sector scheme funded wholly by
Government of India. Payment of incentives under Part A of the
scheme will be through Adhaar Bridge Payment System directly into
the Adhaar Seeded bank account of the First Time employee. Under
Part B, the incentive will be released directly into the PAN linked
Bank Account of the establishment/employer.
(d): A steering committee has been constituted to ensure
effective rollout and monitoring of the ELI scheme, with
representation from various labour intensive and related
Ministries/Department.
*****