Objectives and outlay
- To boost formal employment, especially for first-time workers, and incentivize employers to create sustained jobs.
- Total outlay of INR 99,446 crore (INR 994.5 billion) for jobs created between 1 August 2025 and 31 July 2027.
- The implementation agency would be Employees’ Provident Fund Organization (‘EPFO’).
- ELIS aims to incentivize the creation of more than 3.5 crore jobs, over a period of two years.
Support to employers
- Employers will get incentives in respect of employees with salaries up to INR 100,000.
- The Government will incentivize employers for two years, for each additional employee.
- This is applicable for employment sustained for at least six months.
- For the manufacturing sector, incentives may be extended up to four years.
- Employers with less than 50 employees and registered with EPFO, will be required to hire at least two additional employees on a sustained basis for at least six months.
- Employers with 50 or more employees will be required to hire at least five additional employees on a sustained basis for at least six months.
| EPF wage slabs of additional employee | Benefit to the employer (each additional employment per month) |
| Up to INR 10,000 per month | Up to INR 1,000 |
| INR 10,000 – INR 20,000 per month | Up to INR 2,000 |
| INR 20,000 – INR 100,000 per month | Up to INR 3,000 |
Incentive for first time employees
- Targeting first-time employees registered with EPFO, the Government will offer one-month EPF wage up to INR 15,000 in two installments.
- Employees with salaries up to INR 100,000 will be eligible.
- The first instalment will be payable after six months of service.
- The second instalment will be payable after 12 months of service and completion of a financial literacy programme by the employee.
- A portion of the incentive will be kept in a savings instrument of deposit account for a fixed period and can be withdrawn by the employee later.
Impact for employers
- While the amounts seem small to begin with, ELIS applies to service, trading and manufacturing units registered with EPFO.
- Thus, all such units having continued hiring for six months would be eligible for the incentive.
- Large service entities (IT, logistics, hospitality, consulting, education, media) continually hire employees. INR 3000 / month for two years for a mere 50 employees amounts to an incentive of INR 36 lakhs.
- The same for manufacturing units should result in an incentive of INR 72 lakhs.
Incentive payment
- Payments to employees will be made through Direct Benefit Transfer mode using Aadhar Bridge Payment System.
- Payments to employers will be made directly into their PAN-linked bank accounts.
