The Union Cabinet has greenlit an employment-linked incentive (ELI) scheme worth ₹1 lakh crore to generate more than 3.5 crore job opportunities nationwide. This initiative, embedded in the Union Budget 2024–25, is set to offer financial aid to employers and ensure social security for workers, particularly in the manufacturing domain.
Boosting Job Creation Across Sectors
- The ELI scheme is projected to foster the creation of over 3.5 crore jobs between August 1, 2025, and July 31, 2027.
- Approximately 1.92 crore of these positions will be reserved for first-time job seekers.
- The scheme aims to enhance social security measures and promote the establishment of more formal employment opportunities in all sectors, with special emphasis on bolstering the manufacturing sector.
Financial Incentives and Benefits
- Employers stand to gain up to ₹3,000 per new employee every month for a span of two years, provided the job endures for a minimum of six months.
- In the manufacturing industry, incentives can be extended for an additional two years.
- New recruits will also be entitled to receive one month’s wage (up to ₹15,000) as part of the benefits package.
Official Announcement and Budget Plan
- The ELI scheme was officially unveiled by Union Minister Ashwini Vaishnaw during a Cabinet briefing in New Delhi.
- He highlighted that this scheme is among the five key initiatives under the Prime Minister’s employment and skill development agenda, with a total budget allocation of ₹2 lakh crore aimed at benefiting more than 4 crore young individuals.
- This program is strategically crafted to formalize employment, expand social security coverage, and diminish the youth unemployment rate in India.
Key Takeaways for Competitive Exams
- The Union Cabinet has sanctioned a ₹1 lakh crore ELI scheme to generate 3.5 crore jobs.
- The scheme prioritizes social security and formal job creation, with a focus on the manufacturing sector.
- Employers can receive financial incentives for hiring new employees, and the program aims to benefit over 4 crore youth in total.
