New Delhi2 hours ago
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The government is going to start Employment Linked Incentive Scheme i.e. ELI. The Government of India announced this scheme on 23 July 2024 in Union Budget 2024-25 and it has been approved by the Cabinet on 1 July today. Its purpose is to increase the formal employment by helping the job -giving companies and those who start jobs for the first time.
Question 1: What is this ELI scheme?
answer: Employment linked incentive scheme means that the government will pay money to companies and businesses that will give jobs to more and more people. This is a kind of reward (incentive), which will encourage companies to hire new people and make them skilled.
These schemes focus on increasing jobs especially in young people, small-medium enterprises, and different sectors such as manufacturing, services and technology. The scheme will run from 1 August 2025 to 31 July 2027. Due to this, there is a plan to produce more than 3.5 crore jobs in two years.
Question 2: How will this scheme work?
answer: This scheme is divided into two parts: Part A for new jobs and Part B for jobs. Come, let’s understand it in easy language …
Part A: Help to those working for the first time
- This part is for those who are starting a job for the first time and registered in EPFO. Such employees will be given the first month salary (maximum ₹ 15,000) in two parts. This benefit will be available to those employees whose salary is up to 1 lakh rupees.
- The first installment will be available after 6 months of job and the second installment will get 12 months after doing jobs and completion of financial literacy programs.
- To increase the habit of savings, some part of this incentive will be placed in a savings account or deposit, which employees can remove later. About 1.92 crore new employees will benefit from this part.
Part B: Support to jobs companies
- This part focuses on producing more jobs in every sector, especially on the manufacturing sector. Companies will get incentives for employees whose salary is up to Rs 1 lakh.
- The government will provide Rs 3,000 per month to the companies for two years, provided the employees were in the job for at least 6 months. These incentives for the manufacturing sector will also be available till the third and fourth year.
- It also has some conditions. Companies registered in EPFO will have to hire at least 2 new employees (for companies with less than 50 employees) or 5 new employees (50 or more employees) for 6 months.
Under Part A, the job will be given all the amount through Direct Benefit Transfer (DBT), in which Aadhaar Bridge Payment System (ABPS) will be used. Payments will be made directly to the bank accounts linked to their PAN under Part B.
Question 3: What is the purpose of this scheme?
answer: The aim is to create more jobs in India, especially in the manufacturing sector. Also, this scheme will promote “Make in India”, improve people’s skills and give them social security (eg pension, insurance).
- Increasing jobs: To create 3.5 crore new jobs in the next two years.
- Skilled youth: Especially preparing youths of 18-35 years for jobs.
- Support msmes: Promote small and medium business, which are the backbone of India’s economy.
- Self -reliant India: To strengthen ‘Make in India’ and make India a global hub of manufacturing.
RDI scheme also approved to promote research and innovation
The cabinet has also approved the Research Development and Innovation (RDI) scheme to strengthen India’s research and innovation system. A fund of Rs 1 lakh crore has been kept for this.
The purpose of this scheme is to encourage the private sector to participate extensively in research and innovation.
Private companies play a big role in bringing innovation and research to the market, and under this scheme they will be given loans for long term or without interest. This will make it easier for the private sector to invest in research. These schemes have been designed to innovate, adopt technology and increase competition in new and strategic sectors.