The wait for the country’s youth is finally over. The central government has taken another historic step as part of its major employment promotion campaign. The Union Cabinet, chaired by Prime Minister Narendra Modi, formally approved the Employment Linked Incentive Scheme (ELI). This scheme has been specifically designed to provide financial assistance to young people entering the workforce for the first time.

Under this scheme, the government will provide an amount equivalent to one month’s salary to approximately 19.2 million new youth. The government has allocated a massive budget of approximately ₹99,446 crore for this. Young people starting new jobs will receive ₹15,000 directly into their bank accounts, and this amount will be released in two phases.

Read More- Blindly trusting AI can be costly, learn about the dangers associated with ChatGPT.

What is the ELI Scheme and its Objective?

The government announced this scheme in the last Union Budget to increase employment in the country and empower the new workforce financially. This scheme is part of a package of five major programs announced by Prime Minister Modi, under which a total of 41 million youth will benefit from employment, training, and skill development.

The ELI scheme will motivate youth to take up employment and provide a skilled workforce suited to India’s future needs. By providing additional financial assistance to first-time employees, the government aims to facilitate the start of a new career.

How will financial assistance be provided?

Under this scheme, young employees will receive an incentive of ₹15,000. This amount will be deposited in two installments. The first installment will be given after six months of employment, and the second installment will be given after completing 12 months and completing a financial literacy program. A portion of this assistance will also be deposited into the employee’s EPF account, ensuring their financial future is secure.

Benefits for Companies Too

The scheme will benefit not only the youth but also companies. The government will provide a maximum incentive of ₹3,000 per eligible employee to companies. This amount will be given to companies registered with the EPFO ​​and employing new youth. This move will encourage companies to increase new hiring.

Companies with fewer than 50 employees must hire at least 2 new employees, while those with more than 50 employees must hire at least 5 new employees. A minimum of 6 months of service is required for these employees.

Eligibility Criteria

Only those who are joining a job for the first time and are enrolled with the EPFO ​​will be eligible to benefit from the scheme. The candidate’s monthly salary should not exceed ₹1 lakh. They must be employed in an EPFO-registered company.

How to Receive the Incentive

There is no need to submit a separate application under this scheme. As soon as the EPF account is activated, the eligible candidate’s details will be automatically updated in the system. The money will then be transferred directly to their Aadhaar-linked bank account via DBT within the stipulated timeframe.

Read More- If A Tulsi Plant Grows On Its Own At Home, Know What It Signifies

Required Documents

Young people simply need an EPF account, an Aadhaar card, a bank account, and a company joining letter. An EPFO ​​UAN number is also required.