Latest news with #EmploymentLinkedIncentive
The Hindu
5 hours ago
- Business
- The Hindu
New mechanism to implement job-linked incentive scheme will be perfect: Centre
The Centre will form a 'perfect mechanism' to implement the Employment Linked Incentive (ELI) Scheme approved by the Union Cabinet on Tuesday (July 2, 2025) to support employment generation. Union Labour Minister Mansukh Mandaviya said the new mechanism would be implemented soon and added that the mechanism would be perfect and would function based on the payroll addition in the Employees' Provident Fund Organisation (EPFO). He said all employers enrolled under the EPFO would be eligible for the scheme. Mr. Mandaviya said the Centre would learn from the past and make corrections based on the experience in implementing the Production Linked Incentive Scheme in 2020. Under the new ELI scheme, first-time employees registered with the EPFO would get a one-month EPF wage up to ₹15,000 in two instalments. 'Employees with salaries up to ₹1 lakh will be eligible. The first instalment will be payable after six months of service, and the second instalment will be payable after 12 months of service and on completion of a financial literacy programme by the employee,' the Centre had said on Tuesday (July 2, 2025). Social security net Mr. Mandaviya said the Centre's efforts to widen the social security net had paid off, and the International Labour Organisation had approved that more than 90 crore Indians had one or the other social security at present. He added that the Union Government was trying to sign social security agreements with more countries so that Indians working abroad could also avail themselves of the social security schemes in India. He said the country would include social security in the negotiations with bilateral and multilateral trade treaties. Deceptive scheme: CPI(M) Meanwhile, Left parties have questioned the ELI scheme. Demanding that the Centre scrap the scheme, the CPI(M) said it was another attempt by the Union government to benefit the corporates at the cost of workers. 'It is yet another example of its cronyism. The ELI scheme is another deceptive scheme of transferring public funds to corporates, veiled in the promise of enhancing job creation, employability and social security to delude the youth. This scheme promotes fragile and precarious jobs, subsidising investment cost, production costs, labour costs and statutory liabilities of both domestic and foreign employers from the public exchequer,' the statement said. Pro government trade union Bharatiya Mazdoor Sangh welcomed the ELI Scheme and said it would help in employment generation. The BMS said quality of employment, job security, safe workplaces and access to social security were also equally important.
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Business Standard
6 hours ago
- Business
- Business Standard
Massive job boost: Govt clears ₹1 trillion employment scheme — Who can benefit?
Massive job boost: Govt clears ₹1 trillion employment scheme — Who can benefit? | Employment news The Union Cabinet, on July 1, approved a massive ₹1 trillion Employment Linked Incentive (ELI) scheme that aims to create 3.5 crore new jobs across India. Watch the video to find out the details of the scheme and if you qualify.
India Gazette
7 hours ago
- Business
- India Gazette
ELI Scheme to boost resilient and equitable labour market: Tata Chemicals's Mukundan
New Delhi [India], July 2 (ANI): R Mukundan, President Designate CII and Managing Director & CEO, Tata Chemicals Limited, on Wednesday said that the Employment Linked Incentive (ELI) scheme can pave the way for a more resilient, competitive and equitable labour market in the country. 'We believe the ELI scheme can pave the way for a more resilient, competitive and equitable labour market in India. We also commend the government for the consultative approach in designing the scheme while reflecting a strong commitment to public-private partnership,' Mukundan said. 'On behalf of CII and Indian industry, I extend full support to the successful implementation of this important initiative, which will pave the way for Vixit Bharat,' he added. In a video message, Mukundan said that the Indian industry views this decision as a transformative step that complements the ongoing national efforts, including PLI, National Manufacturing Mission and Make in India. 'At CII, we've long advocated this scheme, which focuses on job creation. We believe the ELI scheme can pave the way for a more resilient, competitive and equitable labour market in India,' he added. Union Cabinet approved Employment Linked Incentive (ELI) Scheme to boost job creation, incentivise first-time employees and strengthen social security for the workforce in the country. With an outlay of Rs. 99446 crore, the ELI Scheme will support the creation of over 3.5 crore jobs. Mukundan further added, 'We also commend the government for the consultative approach in designing the scheme while reflecting a strong commitment to public-private partnership. On behalf of CII and Indian industry, I extend full support to the successful implementation of this important initiative, which will pave the way for Viksit Bharat.' 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 of two years for generating additional employment. The ELI Scheme was announced in the Union Budget 2024-25 as part of the 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. (ANI)
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Business Standard
7 hours ago
- Business
- Business Standard
Labour ministry unveils fool-proof plan for ₹1.07 trillion ELI scheme
Labour ministry has worked out a fool-proof mechanism using digital tools to implement the Rs 1.07-lakh crore Employment Linked Incentive (ELI) scheme, which aims to create 3.5 crore jobs over the next two years. The scheme, approved by the Union Cabinet on Tuesday, will be implemented through the social security schemes run by retirement fund body EPFO. Labour Minister Mansukh Mandaviya told reporters that a fool-proof mechanism has been worked out for providing benefits to employees as well as employers under the ELI scheme and benefits will be directly transferred into accounts. The mechanism has been devised after lesson learnt from the implementation of The Aatmanirbhar Bharat Rozgar Yojana (ABRY) where cases of corruption and fake claims were reported. The ABRY was launched to incentivize employers for creation of new employment along with social security benefits and restoration of loss of employment during COVID-19 pandemic. The scheme was aimed at reducing the financial burden of the employers of various sectors/industries including MSME and to encourage them to hire more workers. Under ABRY, the Government of India was bearing both the employees' share (12 per cent of wages) and employers' share (12 per cent of wages) of contribution payable or only the employees' share, depending on employment strength of the EPFO registered establishments. The scheme commenced from October 1, 2020. The government paid the subsidy for two years from the date of registration. The ELI scheme is aimed at supporting job generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector. The scheme aims to incentivise the creation of more than 3.5 crore jobs in the country over two years, an official statement said. 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 of two years for generating additional employment, with extended benefits for another two years for the manufacturing sector. The ELI scheme was announced in the Union Budget 2024-25 as part of the 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. The ELI scheme aims to incentivise 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 1, 2025 and July 31, 2027. The plan consists of two parts, with Part A focused on first timers (employees) and Part B focused on employers. Targeting first-time employees registered with EPFO, this Part A will offer a one-month wage up to Rs 15,000 in two instalments. Employees with salaries up to Rs 1 lakh will be eligible. The first instalment will be payable after 6 months of service, and the second instalment after 12 months of service and completion of a financial literacy programme by the employee.
India.com
12 hours ago
- Business
- India.com
Job ALERT: Govt clears Employment Incentive Scheme, big boost for first-time job seekers and employers due to…, over 3.5 crore new jobs in 2 years and…
Job ALERT: Govt clears Employment Incentive Scheme, big boost for first-time job seekers and employers due to..., over 3.5 crore new jobs in 2 years and... The Indian government has started a new scheme called the Employment Linked Incentive (ELI). It was first announced during the Union Budget on 23 July 2024, and now on 1 July, it has been approved by the Cabinet. The goal of this scheme is to increase formal jobs by supporting both job seekers and employers with money. What is the ELI Scheme? The Employment Linked Incentive (ELI) scheme is a new plan by the government to encourage companies to give more people jobs. If a company hires more workers, the government will give it some money as a reward. This will help young people who are starting their first job and will also support small and medium businesses (MSMEs). The scheme will also create more jobs in areas like factories (manufacturing), services, and technology. It will start on 1 August 2025 and run till 31 July 2027. In these two years, the goal is to create more than 3.5 crore new jobs. How will this scheme work? Part A: For First-Time Employees – This part is for people who are starting their first-ever job and are registered under EPFO (Employees' Provident Fund Organisation). These employees will get up to Rs. 15,000 as a salary support, divided into two payments: First half – after 6 months of working Second half – after 12 months of working and completing a basic money management course (financial literacy) Some part of this money will be kept in a savings account or fixed deposit, which the employee can use later. Part B: Support for Companies That Give Jobs – This part of the ELI scheme is to help companies that give jobs to more people, especially in manufacturing. Who will get the benefit? Companies that hire workers with a salary of up to ₹1 lakh per month These companies will get Rs. 3,000 per employee every month from the government This support will be given for 2 years, and for manufacturing sector, it can go on for 3rd and 4th years too What are the conditions? The company must be registered with EPFO (Employees' Provident Fund Organisation) If the company has less than 50 workers, it must hire at least 2 new people If the company has 50 or more workers, it must hire at least 5 new people These new employees must work for at least 6 months How will the money be given? For employees (Part A): Money will be sent directly to their bank through DBT (Direct Benefit Transfer) using their Aadhaar-linked system For companies (Part B): Money will go directly to the bank account linked to the company's PAN What is the goal of this scheme? This scheme wants to: Create more jobs, especially in factories and industries Help youth learn new skills and get ready for work Support small and medium businesses (MSMEs), which are the backbone of India's economy Strengthen the 'Make in India' mission and turn India into a global manufacturing hub Government also approved a new research scheme Along with the ELI scheme, the government also approved a new plan called the Research, Development, and Innovation (RDI) Scheme. What is the RDI Scheme? It's a plan to help private companies do more research and innovation The government has kept a big fund of Rs. 1 lakh crore for this Companies will get low-interest or no-interest loans for a long time This money will help them create new ideas, technologies, and products The goal is to boost research, support new industries, and help India become a global leader in technology and innovation
