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Cabinet approves employment linked incentive scheme to catalyze job creation
Jul-02-2025

With an aim to support employment generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector, the Union Cabinet has approved the Employment Linked Incentive (ELI) Scheme. 

The ELI Scheme was announced in the Union Budget 2024-25 as part of PM’s package of five schemes to facilitate employment, skilling and other opportunities for 4.1 crore youth with a total budget outlay of Rs 2 lakh crore. Under the Scheme, while the first-time employees will get one month’s wage (up to Rs 15,000), the employers will be given incentives for a period to two years for generating additional employment, with extended benefits for another two years for the manufacturing sector. 

With an outlay of Rs 99,446 crore, the ELI Scheme aims to incentivize the creation of more than 3.5 crore jobs in the country, over a period of 2 years.  Out of these, 1.92 crore beneficiaries will be first timers, entering the workforce.  The benefits of the Scheme would be applicable to jobs created between August 01, 2025 and July 31, 2027.


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