Cabinet approves incentive scheme to create 3.5 crore jobs in 2 years

The Union Cabinet on Tuesday approved the Employment Linked Incentive (ELI) scheme aimed at generating over 3.5 crore jobs in two years. The scheme, with a total outlay of Rs 99,446 crore, will support job creation, enhance employability and expand social security coverage across sectors, with a special push for manufacturing.

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Out of these, 1.92 crore beneficiaries will be first-timers, entering the workforce. The benefits of the scheme would be applicable to jobs created between August 1, 2025, and July 31, 2027.

Speaking to mediapersons after the Cabinet meeting, Minister for Information and Broadcasting Ashwini Vaishnaw informed that under the scheme, while first-time employees would get one month’s wage (up to Rs 15,000), the employers would be incentivised for hiring and retaining additional workers.

The ELI scheme was announced in the Union Budget 2024-25 to generate formal employment by offering financial support to both employers and first-time employees. To avail the benefits, employees must enrol in EPFO and meet Aadhaar-bank seeding requirements.

“With the ELI scheme, the government intends to catalyse job creation in all sectors, particularly in the manufacturing sector, besides incentivising youth joining the workforce for the first time,” Vaishnaw said.