Employment Linked Incentive (ELI) Scheme

Employment Linked Incentive (ELI) Scheme : Recently, in a major push to address unemployment and promote formal job creation, the Union Cabinet, chaired by the Prime Minister, approved the Employment Linked Incentive (ELI) Scheme.

• About ELI Scheme : Aims to generate over 3.5 crore new jobs in the next two years, with a special thrust on the manufacturing sector.
• Dual-Structured Design:

o Support for First-Time Employees : Encourage youth to join the formal workforce.

ü Target Beneficiaries: 1.92 crore young individuals entering formal employment for the first time.

o Incentives for Employers Hiring Additional Workers: Stimulate demand-side job creation by encouraging employers to expand their workforce.

ü Coverage: All sectors, with extended benefits for the manufacturing sector.

• Key Expected Outcomes: Formalization of Workforce: Integration of millions into the EPFO ecosystem, ensuring social security.

o Boost to Manufacturing: Extended incentives support the Make in India and Atmanirbhar Bharat missions.

o Inclusive Job Growth: Special focus on benefiting youth, gig workers transitioning to formal jobs, and women entering the workforce.