The employment-linked initiative (ELI) scheme approved by the Union Cabinet on Tuesday will be available to all companies that wish to offer formal sector workers, sources have indicated. It is expected that operational guidelines on the schemes will be issued soon.
Companies would be expected to apply to the Employees’ Provident Fund Organisation (EPFO) to avail benefits under the two ELI schemes. The EPFO would also monitor workers joining under the ELI and would check that they are first-time workers based on their Universal Account Number (UAN).
“Every worker gets only one UAN, which gets transferred every time the worker changes jobs. The UAN would act as a check to ensure that only first-time workers get benefits under the first scheme of the ELI.
The EPFO has already been working on the back-end logistics of the scheme. It had directed employers to activate the UAN of their employees. UAN activation can also be done through biometric authentication, through Face-recognition Technology. Employees are also expected to link their UAN with their bank accounts and Aadhaar to access benefits under the scheme.
While the ELI schemes have a Budget of about Rs 1 lakh crore, sources indicated that this could be increased by upto 10% based on the jobs created during the two-year period.
Announced in the Union Budget 2024-25, the two ELI schemes have an outlay of Rs 99,446 crore and aim to incentivize the creation of more than 3.5 crore jobs in the country, over two years, for jobs created between August 1, 2025, and July 31, 2027.
Targeting first-time employees registered with EPFO, the first scheme will offer a one-month EPF wage up to Rs 15,000 in two installments. Employees with salaries up to Rs 1 lakh will be eligible. The second scheme will cover the generation of additional employment in all sectors, with a special focus on the manufacturing sector. The employers will get incentives with respect to employees with salaries up to Rs 1 lakh. The government will incentivise employers, up to Rs 3,000 per month, for two years, for each additional employee with sustained employment for at least six months.
Sources also explained that these two ELI schemes remain separate from the Prime Minister’s Internship Scheme, which is being spearheaded by the Ministry of Corporate Affairs and aims to provide on-ground internship at top 500 companies to young candidates.
