In India, there are several government welfare schemes that promote employment and business. These schemes are designed to create formal jobs. One such scheme is the Employment Linked Incentive (ELI) Scheme, also called Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY).
This scheme was launched on 1st August 2025 under the Indian government to help businesses hire more people. It also aims to support workers by encouraging formal employment, like jobs that give a salary, PF and other benefits. Let’s understand more about the scheme in the following guide. Here, we would discuss what the Employment Linked Incentive Scheme is, the benefits of the Employment Linked Incentive Scheme and more.
What is the ELI Scheme?
The Employment Linked Incentive Scheme is a government plan launched to give support to employers who hire new employees. The scheme is launched for 2 years and will end on 31st July 2027. It looks to formalise employment, and with a budget of ₹99,446 crore, and an aim to help create over 3.5 crore formal jobs.
If a company gives someone a job for the first time, the government would help by paying the Employees’ Provident Fund (EPF) share of up to ₹15,000 in two instalments. This would not only reduce the cost to the company but also help more people get into formal jobs.
Also Read : What is Udyog AdharELI Scheme Components at a Glance
The ELI scheme or Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) is divided into two main parts to cover incentives for both employees and employers.
Part A – Support for first-time jobholders.
Part B – Support for employers.
Eligibility Criteria of the ELI Scheme
To get the benefits of the ELI scheme, there are some conditions that both employers and employees must fulfil:
For employees:
- The monthly gross salary should not be more than ₹1 lakh.
- Must be newly registered with EPFO.
- Must have the Aadhaar linked to both EPFO and the bank account.
For employers:
- Must be registered with EPFO.
- Must show a net increase in their total employees from the previous year.
- For manufacturing-related incentives, the companies must hire at least 50 new workers (not registered with EPFO) or 25% of their current staff, whichever number is lower.
ELI Scheme Benefits
There are many benefits of the Employment Linked Incentive scheme for both employers and employees:
- The scheme support has been provided for 2 years.
- The scheme encourages first-time employment and is expected to create over 3.5 crore formal jobs.
- The employees earning up to ₹15,000 get one month’s wage in two instalments (after 6 and 12 months)
- The government pays both the employee’s and the employer’s EPF share (12% each) for new employees in two installments.
- Companies can save money with the ELI scheme, as it is perfect for small companies that want to grow but face high employment costs.
- The companies may get incentives of up to ₹3,000 per month per employee (earning up to ₹1 lakh) from the government.
- Helps in boosting job creation in manufacturing sectors like textiles, auto, electronics, etc.
ELI Scheme Launch Date and Deadline
The scheme was launched on 1st October 2020 under the Atmanirbhar Bharat Rozgar Yojana. However, it was approved on July 1 2025 and came into being on August 1 2025. It is open for employers and employees for 2 years until July 31 2027. During this period, the eligible parties may avail all the benefits provided.
ELI Scheme Key Compliance Requirements
To get the benefits of the scheme, the employer must:
- Be registered on the EPFO portal.
- Show a new increase in the total workforce.
- Keep a proper record of employees.
- Have a specific increase in the manufacturing sector.
- Make sure the employees are eligible (new hires, earning under ₹15,000 per month and first-time formal workers).
How to Apply for the ELI Scheme Online
As of now, there is no separate portal for applying to the ELI Scheme. But both employees and employers need to follow certain steps to stay eligible.
For Employees:
- Activate UAN on the EPFO Member Portal.
- Link Aadhaar with UAN and your bank account.
- Join EPFO through your employer.
- Complete Financial Literacy Course (only for the second instalment).
For Employers:
- Have a valid EPFO registration.
- Hire new employees as per the scheme’s eligibility rules.
- Keep the employees for at least 12 months to get all benefits.
Conclusion
The Employment Linked Incentive Scheme is quite a helpful government initiative to support job creation and make formal employment more affordable for companies. So, if you are a new employee or a business owner, you would be eligible to avail the benefits of the scheme.
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