Cabinet Clears Rs 1 Lakh Cr Jobs-Linked Incentive Scheme

Aims at generating 3.5 cr jobs between August 1, 2025 and July 31, 2027. Central feature of the scheme is emphasis on workforce formalisation

- ABHINANDAN MISHRA

The Union Cabinet on Monday approved the rollout of the Employment Linked Incentive (ELI) scheme, with an outlay of Rs 99,446 crore, aimed at generating 3.5 crore formal jobs between August 1, 2025 and July 31, 2027.

The ELI scheme is a flagship component of Prime Minister Narendra Modi's third-term employment agenda, which prioritises large-scale job creation, workforce formalisation and economic inclusion.

Senior officials had earlier indicated that the Prime Minister had directed key ministries to align fiscal incentives with measurable employment outcomes.

With Monday's Cabinet approval, the scheme moves from budgetary promise to full-scale policy execution.

The scheme was first announced in the Union Budget 2024-25, presented in July 2024 by Finance Minister Nirmala Sitharaman as part of a Rs 2 lakh crore employment and skilling package for youth.

The scheme is structured in two parts. Under Part A, first-time employees entering the formal workforce will receive a one-time incentive equal to one month of their EPF (Employees' Provident Fund) contribution, capped at Rs 15,000.