Employment Linked Incentive (ELI) Scheme

In a landmark move set to redefine India's employment landscape, the Employees' Provident Fund Organisation (EPFO) has rolled out the Employment Linked Incentive (ELI) Scheme. Unveiled in the Union Budget 2024–25 and officially greenlit by the Union Cabinet in July 2025, the ELI Scheme isn't just another policy; it's a monumental shift in how India approaches formal job creation and social security for its growing workforce. This isn't a one-sided initiative; the scheme cleverly targets two key areas: Incentivizing employers to significantly boost their formal hiring. Providing direct financial lifelines to individuals stepping into the organized sector for the very first time. With a massive financial outlay of ₹99,446 crore, the EPFO ELI Scheme aims to generate over 3.5 crore formal jobs between August 2025 and July 2027. Crucially, this includes bringing 1.92 crore first-time job seekers into the formal economy.

The Employees' Provident Fund Organisation (EPFO) is a statutory body of the Government of India under the Ministry of Labour and Employment. It administers a compulsory contributory Provident Fund Scheme, a Pension Scheme and an Insurance Scheme for the workforce engaged in the organized sector in India.