The scheme that the youth of the country were eagerly waiting for has finally been approved on July 1! The Union Cabinet, chaired by Prime Minister Narendra Modi, has given the green signal to the ELI scheme (Employment Linked Incentive Scheme). Under this powerful scheme, the government will give one month’s salary as an incentive to about 1.92 crore youth.
The central government has set a huge budget of ₹ 99,446 crore for this scheme. In this incentive scheme, the central government will give ₹ 15,000 to those youth who are starting a job for the first time. This is not just financial help, but a big step towards connecting the youth with employment and making them self-reliant.
What is the ELI scheme
The Modi government had announced a big incentive scheme for the youth in the last budget. Under this employment-linked incentive scheme, the government had announced to provide financial assistance to those youth who are starting work for the first time. It was announced that the central government will give ₹ 15,000 apart from salary to the youth who are working for the first time. Now this scheme has been formally approved by the cabinet.
This scheme is part of PM Modi’s package of 5 schemes, under which a total of 4.1 crore youth are to be provided employment, skill development, and other facilities. 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.
- To promote employment generation in the formal sector
Features of the ELI scheme
This scheme has been designed in such a way that its benefits are not only available to employees but also to companies, which will give impetus to employment generation.
The scheme has two main parts:
Benefits to the employee
On joining the job for the first time, an amount of ₹ 15,000 will be received.
This money will not be given at once, but in two installments.
Benefits to the company
The government will also provide financial assistance to the company for which these youth will work for each employee.
How much money will the company get? Know the complete math
The central government will give incentives of up to ₹ 3000 to the company for each employee with a salary of up to ₹ 1 lakh. For employees whose salary is ₹ 10,000 or less, the company will be given money in a special ratio.
Eligibility for the ELI scheme
Certain eligibility criteria have been set to avail of this scheme:
- 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 be able to avail the benefits who are joining EPFO (Employees Provident Fund Organization) for the first time.
- The employee will have to work for at least 6 months.
- The company in which he is working should be registered under EPFO.
Eligibility conditions for the company
Companies will also have to fulfill some conditions to avail of the scheme:
- The company must be registered under EPFO.
- If the company has fewer than 50 employees, it must hire at least 2 new employees.
- If the company has more than 50 employees, it must hire at least 5 new employees.
- These newly appointed employees must work in the company for at least 6 months.
When will the money from the ELI scheme be received
The incentive money received under the ELI scheme will be given in two installments:
First installment:- Will be received after 6 months of starting the job.
Second installment:- Will be received after completion of 12 months and completion of the Financial Literacy Program.
A part of this amount will go to your PF account, which you can withdraw later if needed. This will ensure that the youth also develop the habit of saving and financial planning.
Documents required for the scheme
You will not need too many documents to avail the benefits of the ELI scheme. You should have these basic documents:
Joining letter from the company
EPFO’s UAN number
Aadhaar card
Passbook of the bank account linked to the Aadhaar card
How will money come into the account
As soon as your EPF account is opened under the Central Government’s ELI scheme, you will automatically become eligible for this scheme. You will not need to fill out any separate form, etc. The central government will send the incentive amount of this scheme directly to the bank account linked to your Aadhaar card through DBT (Direct Benefit Transfer).
This process is very simple and transparent, due to which there will be no role of middlemen and the money will reach the beneficiary directly. This is an important step towards making the youth self-reliant and ensuring their participation in the economic development of the country.