The Employees’ Provident Fund Organisation (EPFO) will roll out the Employment Linked Incentive (ELI) Scheme effective from 1st August 2025, aiming to boost formal employment across sectors through payroll-linked government incentives.
What is the ELI Scheme?
A government incentive initiative designed to:
✔ Encourage first-time employees to join PF-covered establishments
✔ Support employers generating new jobs in organized sectors
Effective Date:
- Scheme Start Date: 1st August 2025
- Applicable for jobs created between 1st August 2025 to 31st July 2027
Scheme Categories:
Scheme A – Benefits for First-Time Employees
- Applicable to employees joining PF-covered establishments for the first time (no prior UAN)
- Salary should be ≤ ₹1 Lakh per month
- Incentive of up to ₹15,000 paid in two installments:
- After 6 months of continuous contribution
- After 12 months, post completion of Financial Literacy Program
- Part of the incentive to be deposited in a savings instrument in the employee’s name
- If the employee quits within 1 year, the incentive must be reimbursed by the employer
Scheme B – Benefits for Employers Adding New Jobs
- For any new employee (including existing UAN holders) earning up to ₹1 Lakh/month
- Must add at least:
- 2 employees where headcount is < 50
- 5 employees where headcount is > 50
- Added headcount must be sustained for at least 6 months
- Employer Incentives:
- ₹1,000 per employee for wages < ₹10,000
- ₹2,000 per employee for wages between ₹10,001 – ₹20,000
- ₹3,000 per employee for wages > ₹20,000
- Incentive paid directly to the employer’s PAN-linked bank account
- Valid for:
- 2 years for all sectors
- 4 years for Manufacturing sector
Important Notes:
- Incentives are linked to formal job creation and sustained employment
- Employees must be on payroll and contributing to EPF for a minimum period to qualify
- Employers and employees must comply with KYC and other EPFO regulations
- Detailed operational guidelines to be notified by the EPFO
Stay updated and compliant with the latest EPFO schemes to maximize benefits for both employers and employees.
Need professional assistance with ELI Scheme compliance? Contact our expert advisory team today.
