What is the ELI Scheme?
The Employment Linked Incentive (ELI) Scheme is a central government initiative approved by the Union Cabinet in July 2025 to create formal job opportunities, particularly in the manufacturing sector, through wage incentives to employees and employers.
Objectives of the Scheme
- Generate over 3.5 crore jobs in 2 years
- Provide direct incentives to first-time employees
- Offer hiring-based benefits to EPFO-registered employers
- Encourage formal employment and social security
- Promote long-term job retention and financial literacy
Scheme Structure
| Part | Target Group | Key Benefit |
| Part A | First-Time Employees | ₹15,000 incentive in 2 installments |
| Part B | EPFO-Registered Employers | ₹1,000–₹3,000/month per hire |
Part A – Benefits for First-Time Employees
- Eligibility: Must be a first-time EPFO-registered employee
- Salary Cap: ₹1,00,000/month
- Incentive: One-month EPF wage (max ₹15,000) paid in two parts
- Disbursement: After 6 months and 12 months of continuous service + Financial literacy program
- Payment Mode: DBT via Aadhar-based ABPS
- Savings Lock-in: Part of incentive to go into savings/deposit instrument
Part B – Employer Hiring Incentives
- Eligibility: Must be EPFO-registered
- Minimum Hires: 2 (for firms < 50 employees) or 5 (for firms ≥ 50 employees)
- Eligible Salary: Up to ₹100,000/month
- Monthly Incentives: ₹1,000 to ₹3,000 depending on wage slab
- Duration: 2 years (all sectors), up to 4 years (manufacturing)
- Payment Mode: Direct to PAN-linked employer account
Frequently Asked Questions
Q1. What is the ELI Scheme India 2025?
The ELI Scheme, a government-backed incentive scheme, focuses on formal job creation by providing benefits to first-time workers and employers hiring new staff.
Q2. Who is eligible under the ELI Scheme?
First-time EPFO-registered employees and employers with increased workforce strength under EPFO are eligible.
Q3. What is the salary limit to qualify for incentives?
Employees with a monthly wage up to ₹1 lakh are covered under both Part A and Part B.
Q4. What is the incentive for employers?
Employers receive ₹1,000 to ₹3,000 per month per new employee for up to 2 years (4 years for manufacturing).
Why This Matters for Startups & MSMEs
If you’re a startup or MSME looking to scale operations, this scheme can help reduce hiring costs while promoting formal employment.
Need Help with EPFO, Payroll, or ELI Scheme Implementation?
Biztree Outsourcing is a trusted compliance partner for startups and service companies. We offer:
- Payroll setup and monthly compliance
- EPFO & ESIC registration
- ELI scheme implementation support
- Financial literacy training and claim management