Employment Linked Incentive (ELI) Scheme 2025 | ₹15,000 Benefit for First-Time Employees | Employer Incentives Announced
The Ministry of Labour & Employment has announced the approval and nationwide implementation of the Employment Linked Incentive (ELI) Scheme, aimed at boosting job creation, employability, and social security across all sectors, with a special focus on the manufacturing sector.
Key Highlights of the ELI Scheme:
- Total Scheme Outlay: ₹99,446 Crores
- Job Creation Target: Over 3.5 Crore jobs in the next 2 years
- Eligible Job Creation Period: From 1st August 2025 to 31st July 2027
- Scheme Components:
- Part A: Incentives for First-Time Employees
- One month’s wage up to ₹15,000/- in two installments for first-time employees registered with EPFO.
- Eligibility for employees with salaries up to ₹1 Lakh/month.
- The first installment after 6 months of service; the second after 12 months and completion of a financial literacy program.
- Part B: Incentives for Employers for Additional Employment
- Incentives up to ₹3,000 per month for each additional employee with salaries up to ₹1 Lakh.
- Employers in all sectors eligible; special extended benefits for manufacturing sector employers (up to 4 years).
- Employers must hire at least 2 additional employees (for establishments with <50 employees) or 5 additional employees (for establishments with ≥50 employees) with sustained employment for at least 6 months.
- Part A: Incentives for First-Time Employees
Employer Incentive Structure:
| EPF Wage Slab of Additional Employee | Incentive per Employee per Month |
|---|---|
| Up to ₹10,000 | ₹1,000 |
| ₹10,001 to ₹20,000 | ₹2,000 |
| ₹20,001 to ₹1,00,000 | ₹3,000 |
Note: Employees with EPF wages below ₹10,000 will receive proportional incentives.
Payment Mechanism:
- Payments to employees under Part A through DBT via Aadhar Bridge Payment System.
- Employer incentives under Part B to be credited directly to PAN-linked accounts.
This Scheme is a significant step towards formalizing the workforce, enhancing social security, and catalyzing large-scale job creation, particularly benefiting youth entering the workforce for the first time.
All concerned employers, HR professionals, and eligible employees are advised to take note and initiate necessary steps to avail of the scheme benefits.
For further details, refer to PIB Release ID: 2141129 dated 1st July 2025.
Attention Employers in Bihar!
The Bihar Government has declared a paid holiday on June 28, 2025 (Saturday) for the Municipal General/Bye Election 2025, as per Section 471 of the Bihar Municipal Act, 2007. This applies to all establishments, factories, and businesses in the listed municipal areas to enable employees to exercise their voting rights.
Click here for Official Notification.
Key Details:
Affected Areas: Includes municipalities in districts like Araria, Arwal, Banka, Begusarai, Bhagalpur, Bhojpur, Buxar, Gaya, Gopalganj, Jehanabad, Kaimur, Katihar, Khagaria, Lakhisarai, Madhepura, Munger, Muzaffarpur, Nalanda, Paschim Champaran, Purnia, Purvi Champaran, Saharsa, Samastipur, Saran, Sitamarhi, Siwan, Supaul, and Vaishali.
Who’s Covered: All employees in businesses, trades, industrial undertakings, or other establishments eligible to vote in these municipal elections are entitled to a paid holiday.
Wage Protection: No salary deductions are allowed for this holiday, and employees must be paid as they would on a regular working day.
Penalties for Non-Compliance: Employers violating this provision may face fines up to ₹500.
Exemption: The rule does not apply to employees whose absence may cause significant harm or danger to their workplace operations.
Action Steps for Employers:
- Ensure employees in the listed municipal areas get a paid holiday on June 28, 2025.
- Verify if your establishment falls within the specified election wards (e.g., Banka: Wards 1-26, Buxar: Wards 1-42, etc.).
- Communicate the holiday to your workforce and maintain payroll compliance.
Let’s support democracy by enabling every eligible voter to participate! For the full list of affected areas and wards, check the Bihar Labour Resources Department’s notification or consult a compliance expert.
#BiharElections #MunicipalElection2025 #LabourCompliance #PaidHoliday #BiharMunicipalAct
Source: Bihar Government Notification, Labour Resources Department, dated 18/06/2025.
