ELI Scheme to Launch from August 1: ₹15,000 Incentive for First-Time Employees, Employers Also to Benefit

In a major push to formal employment, the government will implement the Employment Linked Incentive (ELI) Scheme from August 1, 2025. This scheme is designed to benefit first-time job holders in the organized sector by offering a ₹15,000 incentive, while employers will also receive financial support for hiring fresh talent.

Let’s break down who qualifies, how it works, and what to watch out for.

🔍 What Is the ELI Scheme?

The Employment Linked Incentive (ELI) Scheme aims to encourage both job seekers and employers in the formal sector. Here's how it works:

• ₹15,000 incentive will be given to employees joining their first formal job.

• The amount will be paid in two installments:

  • First installment after completing 6 months of continuous employment.

  • Second installment after completing 12 months.

🧑💼 Who Is Eligible?

• Must be joining their first job in the organized sector.

• Should not switch jobs before completing 12 months to receive the full amount.

• Must earn up to ₹1,00,000/month (clarification awaited on whether this is CTC or net salary).

• Required to pass a financial literacy test.

⚠️ If you leave your job before 12 months or take a second job, you may lose the second installment or even 50% of the benefit.

💼 What Do Employers Get?

To incentivize recruitment, companies hiring fresh employees under the ELI scheme will get:

• Up to ₹3,000/month per new hire as an incentive.

• This support will be provided for up to 2 years per eligible employee.

However:

• The employee must stay for at least 6 months for any benefit to be granted to the employer.

• If the employee quits early, the employer may lose the incentive too.

📅 Key Conditions to Note

• The first ₹7,500 (out of ₹15,000) is released after 6 months of employment.

• The remaining ₹7,500 is given after completing 12 months.

• The scheme strictly applies to the first job only. Switching to another job within a year disqualifies you from receiving the second installment.

🧠 Why This Scheme Matters

Experts believe the ELI scheme is a significant step toward employment stability and aims to strengthen job creation in the formal sector. If implemented effectively, it could:

• Encourage youth to join and remain in their first jobs longer.

• Reduce early attrition.

• Support companies with reduced onboarding costs.

• Promote long-term employment over gig or unstable work.

✅ Final Takeaway

The ELI Scheme is a win-win for both employers and employees — but only if all conditions are followed carefully.

For Employees For Employers

₹15,000 incentive (in 2 parts)	₹3,000/month per new hire (up to 2 yrs)
Must stay 12 months to get full benefit	Incentive only if employee stays 6+ months
First formal job only	Encourages fresh hiring
Must pass a financial literacy test	Adds value to skilled recruitment

If you’re starting your career or hiring freshers — August 1 onwards, this scheme could be the start of a financially smart and stable journey.