Employment Linked Incentive (ELI) Scheme: Benefits, Eligibility, Launch Date & How to Apply

The Employment Linked Incentive Scheme (ELI), approved under the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY), aims to promote formal employment by providing financial incentives to first-time employees and employers registered with the Employees' Provident Fund Organisation (EPFO). The EPFO ELI scheme covers eligible jobs created between 1 August 2025 and 31 July 2027.

Employment Linked Incentive Scheme Overview

What is Employment Linked Incentive Scheme?

The Employment Linked Incentive Scheme is a government initiative announced in Budget 2024–25. This scheme benefits employers and first-time employees who have enrolled in the EPFO (Employees Provident Fund Organisation), aiming to incentivise job creation and reduce informal work.    

Eligible employees must be registered with EPFO, activate their Universal Account Number (UAN), and link their Aadhaar and bank account to receive benefits. The EPFO ELI scheme applies to eligible employment generated between 1 August 2025 and 31 July 2027.

Two Parts under the Employment Linked Incentive Scheme

Government has officially restructured the EPFO ELI scheme into two parts:

Part A – First-Time Employees

Provides financial assistance to first-time employees joining the formal workforce through EPFO.

Part B – Incentives to Employers

Provides financial incentives to employers creating additional employment across all sectors. Manufacturing establishments receive an extended benefit period under the scheme.

Employment Linked Incentive Scheme Timeline

ELI Scheme Eligibility Criteria

To avail benefits under the EPFO ELI Scheme:

• Employee must be registered with EPFO.
• UAN must be activated.
• Aadhaar should be linked with UAN and the employee's bank account.
• Monthly salary should not exceed ₹1 lakh.
• Employer must satisfy the prescribed net employment conditions.

ELI Scheme Benefits through EPFO

Part A: First-time Employment Scheme

This employment-linked incentive scheme is all about boosting employees entering the formal workforce for the first time.

• Benefit: Direct transfer of up to ₹15,000 in 2 instalments
  • 1st Instalment: After 6 months of continuous EPFO-enrolled employment
  • 2nd Instalment: After 12 months + successful completion of a mandatory Financial Literacy Course
• Salary Cap: Up to ₹1 lakh/month
• Duration: Valid for 2 years from EPFO enrolment
• Condition: The second instalment is payable only if the employee completes 12 months of continuous service and the mandatory financial literacy programme. If the employee leaves before completing the required service period, no further incentive is paid.

Part B: Incentives to Employers

Eligible employers creating additional employment will receive monthly incentives for each eligible employee.

Eligibility:

• Employee salary up to ₹1 lakh/month.
• Net additional employment.
• Minimum employment conditions prescribed under the scheme.
• Manufacturing establishments receive incentives for up to four years, while other sectors receive incentives for two years.

Monthly Incentive

Coverage and Estimated Outlay of ELI Scheme

How to Apply for ELI Scheme Online?

Eligible employers can complete the one-time registration process through the PMVBRY portal, while eligible employees are automatically considered based on their EPFO records and compliance with the scheme conditions.

For Employees (Part A)

• Activate UAN through the EPFO Member Portal or UMANG app.
• Link Aadhaar with UAN and bank account.
• Ensure your Aadhaar-linked bank account is enabled for Direct Benefit Transfer (DBT).
• Complete the mandatory Financial Literacy Course to receive the second instalment after meeting the prescribed service conditions.
• No separate application form is required. Benefits are processed automatically based on EPFO records and eligibility.

For Employers (Part B)

• Complete the one-time registration on the PMVBRY portal using your EPFO employer credentials.
• Provide PAN, GSTN and PAN-linked bank account details as required.
• Create eligible net additional employment in accordance with the scheme guidelines.
• Maintain the additional employment for the minimum period prescribed under the scheme to continue receiving monthly incentives.
• Incentives are credited directly to the employer's PAN-linked bank account.

The Employment Linked Incentive Scheme under the Pradhan Mantri Viksit Bharat Rozgar Yojana aims to encourage formal employment by providing financial incentives to eligible employees and employers through EPFO. Employees should activate their UAN, complete Aadhaar linking, and maintain continuous EPFO membership to receive benefits under the EPFO ELI scheme.

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