The Union Cabinet has approved the Employment Linked Incentive (ELI) scheme with a Rs 99,446 crore outlay, targeting 3.5 crore job creation over two years. The scheme operates from August 2025 to July 2027, focusing on manufacturing sector employment generation.

Part A offers first-time EPFO employees one month's wage up to Rs 15,000 in two installments after six and twelve months of service, benefiting 1.92 crore workers. Part B provides employers up to Rs 3,000 monthly incentives for two years per additional employee, extending to four years for manufacturing.

Employers must hire minimum two additional employees (under 50 staff) or five (over 50 staff) for sustained six-month employment to qualify for benefits under this comprehensive employment generation initiative.