Modi Government to Give ₹15,000 Under New ELI Scheme—Who Is Eligible and How Will the Money Be Credited?

In a significant step to boost youth employment, the Modi government has launched the Employment Linked Incentive (ELI) Scheme starting July 1, 2025. This new initiative offers a ₹15,000 incentive to first-time employees, directly credited to their bank accounts.

The Union Cabinet has approved this long-awaited scheme, aimed at incentivizing employment among the youth and ensuring social security for the new workforce.

What Is the ELI Scheme?

The ELI (Employment Linked Incentive) Scheme was part of the announcements made in the previous Union Budget. It is designed to encourage fresh employment by providing financial support to individuals taking up their first job and the companies hiring them.

As part of the ELI scheme, the central government will transfer ₹15,000 to eligible individuals, separate from their regular salary. This benefit is targeted toward first-time job seekers who are joining the Employees’ Provident Fund Organisation (EPFO) network for the first time.

Scheme Budget and Reach

The government has set aside a total of ₹99,446 crore for this scheme, aiming to benefit 1.92 crore young Indians in its initial phase. The ELI scheme is a part of a larger employment and skill development package worth ₹2 lakh crore, targeting over 4.1 crore youth through various initiatives.

Objectives of the ELI Scheme

• To develop a skilled workforce for the future

• To motivate youth to take up employment opportunities

• To support companies in hiring new employees

Key Highlights of the ELI Scheme

• ₹15,000 will be provided to first-time employees in two installments

• The scheme has two key stakeholders: the employee and the employer (company)

• In addition to employees, companies will also receive monetary support per new recruit

• The amount will be credited via DBT (Direct Benefit Transfer) to the beneficiary's Aadhaar-linked bank account

How Much Will Companies Receive?

Employers will be given up to ₹3,000 per new employee depending on the employee’s salary slab:

Salary Range (per month)	Monthly Benefit to Employer
Up to ₹10,000	₹1,000
₹10,001 – ₹20,000	₹2,000
₹20,001 – ₹1,00,000	₹3,000

This benefit will be provided only for EPFO-registered employers.

Eligibility Criteria for Employees

To qualify for the ELI scheme:

• The individual must be joining a job for the first time

• Must have never been registered with EPFO before

• Must continue working for at least 6 months with the employer

• Monthly salary should not exceed ₹1 lakh

• Must have a bank account linked with Aadhaar

Eligibility Criteria for Employers

• Must be registered under EPFO

• If the company has less than 50 employees, it must hire at least 2 new employees

• Companies with more than 50 employees must hire at least 5 new employees

• The new hires must remain employed for a minimum of 6 months

When and How Will the ₹15,000 Be Paid?

• The incentive will be paid in two installments:

  • First installment: After the employee completes 6 months of continuous employment

  • Second installment: After 12 months, and completion of a financial literacy program

• A portion of this amount will be credited to the EPF account of the employee

Required Documents

To receive the benefit, the following documents are necessary:

• Company joining letter

• EPFO UAN (Universal Account Number)

• Aadhaar card

• Aadhaar-linked bank account passbook

How Will the Money Be Transferred?

Once your EPF account is activated and contributions begin, you automatically become eligible for the ELI scheme. There is no need to apply separately. The government will directly transfer the amount to your Aadhaar-linked bank account after validating the records through EPFO.

Frequently Asked Questions (FAQs)

Q1. Who can benefit from the ELI scheme?
Only individuals joining the workforce for the first time and getting registered under EPFO are eligible.

Q2. What if someone previously worked and left for studies?
If the person has already been registered with EPFO earlier, they will not be eligible.

Q3. Is the ₹15,000 given at once?
No. It is provided in two phases: one after 6 months of employment, and another after 12 months and financial training.

Q4. How to apply for the scheme?
There's no separate application process. EPFO registration and regular PF deductions will automatically register you under the scheme.

Conclusion

The ELI Scheme is a game-changing move by the Indian government to boost youth employment and support the formal workforce. If you're a first-time job seeker, make sure your employer is EPFO-registered and your Aadhaar-linked bank account is active. With minimal formalities and maximum benefits, this scheme is set to empower millions of young Indians.