The government will start the Employment Linked Incentive (ELI) Scheme from August 1. Under this scheme, people who get their first job in the organised sector will get an incentive of ₹15,000. The government will also give incentives to companies for every new job they provide.
Central PF Commissioner Ramesh Krishnamurthy said that the incentive will be given in two parts. The first instalment will be given after the person completes 6 months in the job. The second instalment will be given after 12 months of work. If someone leaves the job before getting the second instalment, they may not get the remaining money.
To get the benefit of this scheme, the salary of the employee should not be more than ₹1 lakh per month. A financial literacy test will also be required. However, it is not yet clear whether the ₹1 lakh limit will be based on CTC or net salary.
Companies will get ₹3,000 per month for every new employee they hire. This benefit will be given for two years. But it is clearly mentioned in the scheme that the employee must work for at least 6 months to get the first instalment. If the employee leaves before that, the company may also lose its incentive.
What Happens If You Change Jobs?
According to the rules of the ELI scheme, the money received in the 12th month is only for your first job. If you change your job and join another company before completing one year, you may not meet the conditions of the scheme. In that case, you may receive only 50 percent of the ₹15,000 incentive.
But if you stay in your first company for a full year, then you will get the full amount of ₹15,000.
Experts say this scheme is a good step to bring more stability to jobs and to increase employment in the organized sector. If this scheme is run properly, it can help create long-term jobs across the country.