First-time private sector employees to get ₹15,000 under new Centre scheme

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New Delhi: The Union Cabinet has approved the Employment Linked Incentive (ELI) Scheme, designed to promote first-time employment in the private sector by offering incentives of up to ₹15,000 to new entrants.
With a total outlay of ₹99,446 crore, the scheme aims to create over 3.5 crore jobs across India within two years. Employers will also receive cash incentives of ₹3,000 for each additional job generated under the programme.
Initially proposed in the 2024–25 Union Budget, the scheme will be launched on August 1 and will remain in force until July 31, 2027. According to official estimates, it is expected to benefit around 1.92 crore first-time workers earning salaries up to ₹1 lakh per month.
Eligible employees will get the incentive in two instalments—the first after six months of continuous service and the second after 12 months, subject to completion of a financial literacy programme. To encourage savings, part of the incentive amount will be placed in a fixed savings instrument.
Incentives for employers
Employers can also claim benefits based on the number of new hires earning up to ₹1 lakh per month. Companies with fewer than 50 employees must hire at least two new workers, while those with 50 or more staff must add at least five.
Employer incentives will vary by the base wage of new employees: ₹1,000 for wages up to ₹10,000, ₹2,000 for salaries between ₹10,000 and ₹20,000, and ₹3,000 for salaries above ₹20,000. The government expects this model to help generate an additional 2.6 crore jobs.
In the manufacturing sector, employers can avail the incentive for up to four years, provided new employees remain in the job for at least six consecutive months.
A detailed implementation plan is expected to be released soon, outlining guidelines for both employers and employees under the scheme.