The Union Cabinet on 1 July approved the incentive scheme related to employment with an expenditure of Rs 1 lakh crore to promote manufacturing. Today on Wednesday 1 July Information and Broadcasting Minister Ashwini Vaishnav (I & B minister Ashwini Vaishnaw) Has announced this. The government said that the cabinet has approved the incentive scheme related to employment to manufacture employment, employment capacity and social security, with focus on the manufacturing sector. Under this scheme, where the employees working for the first time will get one month’s salary (up to Rs 15,000). At the same time, employers will be encouraged for a period of two years to generate additional employment. Along with this, extended benefits will also be given for two years for the manufacturing sector.
The ELI Scheme was announced as part of the package of five schemes of the PM to facilitate employment, skills and other opportunities to 4.1 crore youth in the Union Budget 2024-25. Whose total budget expenditure has been kept at Rs 2 lakh crore.
The ELI scheme aims to encourage more than 3.5 crore jobs in the country over a period of 2 years with an expenditure of Rs 99,446 crore. Of these, 1.92 crore beneficiaries will be going to enter the workforce for the first time. The benefit of this scheme will be applicable to jobs generated between August 1, 2025 to July 31, 2027.
The scheme has two parts, in which Part A focuses on those working for the first time and Part B is focused on employers:
Part A: Incentive to employees working for the first time:
For the first time employees registered in EPFO, one month EPF salary of up to Rs 15,000 will be given in two installments in this part. Employees with salary up to Rs 1 lakh will be eligible for this scheme. The first installment will be payable after 6 months of service and the second installment will be payable after 12 months service and completion of Financial Literacy Program by the employee. To encourage savings habit, a part of the incentive will be placed in the saving instrument of the deposited account for a certain period of time. It can be extracted later by the employee.
Employees working for about 1.92 crore from Part A will benefit for the first time.
Part B: Assistance to employers:
This part will include construction of additional employment in all areas. It will focus on manufacturing. Employees will get incentive in relation to employees with salary up to Rs 1 lakh. The government will give incentive to employers for at least six months for each additional employee for two years for Rs 3,000 per month. Incentives for the manufacturing sector will also be extended to the third and fourth years.
The establishments registered with EPFO (employer with less than 50 employees) will be required to appoint at least two additional employees on a continuous basis for at least six months. At the same time, employers with 50 or more employees will be required to appoint five additional employees for the same period.
