ELI Scheme: The wait of the youth of the country, who were waiting for a long time for a scheme that would make the path to their first job easier, is over. On July 1, the Union Cabinet, headed by Prime Minister Narendra Modi, approved the ELI scheme (Employment Linked Incentive Scheme). Under this explosive scheme, the government will give one month’s salary to about 1.92 crore youth.
The central government has kept a big budget of ₹ 99,446 crore for this scheme. Under this incentive scheme, the central government will provide financial assistance of ₹ 15,000 to the youth who are employed for the first time. This step is a historic initiative towards connecting the youth with employment and providing them financial support in the initial days.
What is the ELI scheme
The Modi government had announced this incentive scheme for the youth in the last budget. This employment incentive scheme announces to give money to those youth who are going to work for the first time. It was announced that the central government will give ₹ 15,000 separately to the youth working for the first time in addition to the salary.
Now this scheme has been formally approved by the cabinet. This scheme is part of PM Modi’s package of 5 schemes, under which employment, skill development, and other facilities are to be provided to a total of 4.1 crore youth. A total budget of ₹ 2 lakh crore has been kept for this entire package.
Main objectives of the ELI scheme
- To prepare a skilled workforce for the future in the country.
- To encourage youth for employment.
It is a benefit to both the employee and the company
This scheme works in two main parts, which benefit both the employee and the company.
For the employee:-
After joining the job for the first time, ₹ 15,000 will be given. This money will not be available at once, but in 2 installments. This amount will help the youth with their initial expenses.
For the company:-
The company will also get money from the government for each employee. For every employee with a salary up to ₹ 1 lakh, the company will get up to ₹ 3,000 from the central government. For employees whose salary is ₹ 10,000 or less, the company will be given money according to a certain ratio. This will encourage companies to hire new employees.
Who will be the beneficiary
Some important conditions have to be fulfilled to avail of this scheme:
Eligibility of the youth:-
Any youth of the country who is joining a job for the first time is eligible for this scheme. The monthly salary of the employee should not exceed ₹ 1 lakh. Only those employees will benefit who are joining EPFO (Employees’ Provident Fund Organisation) for the first time. The employee has to work for at least 6 months. The company in which he is working must be registered under EPFO.
Eligibility conditions of the company:-
The company must be registered under EPFO. If there are fewer than 50 employees, at least 2 new employees have to be appointed. If there are more than 50 employees, at least 5 new employees have to be appointed. These employees must work in the company for at least 6 months.
When will the money from the ELI scheme be received
The money from the ELI scheme will be received in 2 installments:
First installment:- The first installment will be received after working for 6 months.
Second installment:- The second installment will be received after completion of 12 months and completion of the Financial Literacy Program.
Some part of this money can be deposited in the PF account, which can be withdrawn later. This will also be a kind of mandatory savings for the youth.
Documents required for the scheme
Joining letter of the company
UAN number of EPFO
Aadhaar Card
Bank account passbook linked to the Aadhaar card
How will the money come into the account
As soon as your EPF account is opened under the ELI scheme of the Central Government, you will become eligible for this scheme. You do not need to fill out any separate form, etc. The central government will automatically send the incentive amount of this scheme to the bank account linked to your Aadhaar card through DBT (Direct Benefit Transfer). This process is very simple and transparent.