Starting from August 1, 2025, the government will introduce the Employment Linked Incentive (ELI) Scheme to support youth employment in India.
Under this scheme, individuals who start their first job will receive a financial incentive of ₹15,000 from the government.
The main goals of the scheme are:
Encouraging young people to seek jobs
Building a skilled workforce
Boosting immediate job creation
Promoting the manufacturing sector
The scheme will be active for two years — from August 1, 2025, to July 31, 2027. The government has set aside ₹99,446 crore for its implementation.
Who Can Benefit and What Counts as a First Job?
This scheme is for first-time employees earning up to ₹1 lakh per month. To qualify, it must be their first PF (Provident Fund) account. For example, if you already had a job where PF wasn’t deducted, but your new job deducts PF, you will be eligible.
Incentives will be provided in two installments:
First installment: After 6 months of PF contribution
Second installment: After 12 months and completion of a financial literacy program
You don’t need to apply separately. Once your PF account is active and contributions are made for 6 continuous months, the money will be credited automatically.
Benefits for Companies and Key Conditions
The scheme also supports companies by offering ₹3,000 per month per employee, provided certain conditions are met:
Employees must earn between ₹20,000 and ₹1 lakh per month.
If the salary is ₹10,000 or less, the benefit will be given proportionately.
The company must be registered with EPFO (Employees’ Provident Fund Organisation).
Additional company requirements:
If the company has less than 50 employees, they must hire at least 2 new employees under the scheme.
If there are more than 50 employees, they need to hire at least 5 new employees.
These new hires must work for at least 6 months to qualify.
