Paper: GS – II, Subject: Polity, Topic: Executive, Issue: The Employment-Linked Incentive (ELI) scheme.
Context:
The Employment-Linked Incentive (ELI) scheme approved by the Union Cabinet. The scheme aims to boost employment generation in formal sectors, particularly manufacturing, by providing incentives to both first-time employees and employers.
Key Takeaways:
Key Features of the Employment-Linked Incentive Scheme:
- Employment Generation Target: The scheme aims to create approximately 3.5 crore jobs over a period of two years.
- Focus on First-Time Employees: Out of the total employment opportunities, around 1.92 crore beneficiaries are expected to be first-time employees entering the workforce.
- Scheme Duration: Implementation Timeline: The Employment-Linked Incentive scheme will be effective for jobs created from August 1, 2025, to July 31, 2027.
Eligibility Criteria Salary Cap:
- Employees with salaries of up to ₹1 lakh per month will be eligible for the scheme.
- Employers’ Hiring Requirements: Employers with fewer than 50 employees must hire at least two additional employees.
- Employers with 50 or more employees need to hire at least five additional employees.
- New hires must sustain employment for a minimum of six months to qualify for incentives.
Financial Structure of Wage Subsidy and Employer Incentives:
The ELI scheme is a comprehensive initiative aimed at boosting employment, particularly in the manufacturing sector, by providing targeted incentives to both employees and employers. The scheme’s structure, with its focus on first-time employees and sustained employment, is designed to create a more robust and formalized workforce.
La Excellence IAS Academy, the best IAS coaching in Hyderabad, known for delivering quality content and conceptual clarity for UPSC 2025 preparation.
FOLLOW US ON:
â—‰ YouTube : https://www.youtube.com/@CivilsPrepTeam
â—‰ Facebook: https://www.facebook.com/LaExcellenceIAS
â—‰ Instagram: https://www.instagram.com/laexcellenceiasacademy/
GET IN TOUCH:
Contact us at info@laex.in, https://laex.in/contact-us/
or Call us @ +91 9052 29 2929, +91 9052 99 2929, +91 9154 24 2140
OUR BRANCHES:
Head Office: H No: 1-10-225A, Beside AEVA Fertility Center, Ashok Nagar Extension, VV Giri Nagar, Ashok Nagar, Hyderabad, 500020
Madhapur: Flat no: 301, survey no 58-60, Guttala begumpet Madhapur metro pillar: 1524, Rangareddy Hyderabad, Telangana 500081
Bangalore: Plot No: 99, 2nd floor, 80 Feet Road, Beside Poorvika Mobiles, Chandra Layout, Attiguppe, Near Vijaya Nagara, Bengaluru, 560040
