The Indian government has introduced three new schemes under the Employment-Linked Incentive (ELI) as part of the Prime Minister’s package, aiming to boost job creation and support both employees and employers. Finance Minister Nirmala Sitharaman announced these initiatives during the Union Budget 2024-25 presentation.
Scheme A: First-Time Employees
This scheme is designed to support individuals newly entering the formal workforce. Eligible first-time employees will receive a direct benefit transfer of one-month salary, up to Rs. 15,000, in three installments. The scheme targets those earning up to Rs. 1 lakh per month and is expected to benefit 2.1 crore youth.
Scheme B: Manufacturing Sector Incentives
Focused on the manufacturing sector, this scheme will provide incentives to both employees and employers based on their EPFO contributions for the first four years of employment. It aims to encourage the hiring of first-time employees and is projected to benefit 30 lakh youth.
Scheme C: Employer Support
This employer-focused scheme covers additional employment across all sectors. Employers will receive reimbursements of up to Rs. 3,000 per month for each additional employee with a salary up to Rs. 1 lakh per month. The scheme is expected to incentivize the employment of 50 lakh individuals.