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ARTICLE · 15 AUGUST 2025

Understanding India's Employment-Linked Incentive (ELI) Schemes

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On July 1, 2025, the Government of India approved the Employment Linked Incentive (ELI) for rollout from August 1, 2025, a scheme designed to support employment generation, enhance employability, and strengthen social security across all sectors, with a particular emphasis on the manufacturing sector.

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On July 1, 2025, the Government of India approved the Employment Linked Incentive (ELI) for rollout from August 1, 2025, a scheme designed to support employment generation, enhance employability, and strengthen social security across all sectors, with a particular emphasis on the manufacturing sector. The Scheme to be implemented in mission mode from August 2025 to July2027, with disbursements processed through Employees' Provident Fund Organisation (EPFO),contains two Parts with the aim to support formal job creation and social security across various sectors.

  1. Part A: Incentives for first-time employees
  2. Part B: Incentives for employers hiring additional staff

Part A: Incentive to First Time Employees:

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