Industries and Commerce Minister Rao Narbir Singh has welcomed the Employment Linked Incentive Scheme recently approved by the Union Cabinet, calling it a “milestone initiative” to boost employment and support economic growth in the MSME, manufacturing and service sectors.

Advertisement

“The scheme will prove to be beneficial for new employees and offer social security while encouraging industries to generate more jobs,” the minister said, after participating in a virtual conference chaired by Union Labour and Employment Minister Dr Mansukh Mandaviya.

The scheme, effective from August 1, 2025 to July 31, 2027, has an initial outlay of Rs 99,446 crore and aims to generate 3.5 crore new jobs across the country within two years.

Under the scheme, youth entering formal employment for the first time will receive up to Rs 15,000 in two instalments, provided they stay employed with the same employer.

Employers will receive incentives based on salary slabs: Rs 1,000/month per employee (salary up to Rs 10,000), Rs 2,000/month (salary Rs 10,001-Rs 20,000), Rs 3,000/month (salary Rs 20,001-Rs 1,00,000).

“The scheme supports both employees and employers and could be extended into the third and fourth year for the manufacturing sector,” Rao Narbir Singh said.

He instructed state officials to begin establishing food and canteen facilities for industrial workers in Gurugram, IMT Sohna and Manesar. He also called for awareness drives and engagement with local industry bodies to ensure maximum utilisation of the scheme in Haryana’s industrial zones.