From August 1, the government will start the Employment Linked Incentive (ELI) Scheme. Under this scheme, people who get their first job in the organised sector will receive an incentive of ₹15,000 from the government.
Companies that provide new jobs will also get incentives for each new employee they hire. Central PF Commissioner Ramesh Krishnamurthy said that the incentive will be given in two parts. The first instalment will be given after completing 6 months of employment. The second instalment will be given after completing 12 months of employment.
People who earn a salary of up to ₹1 lakh per month will be eligible for this scheme. To get the benefit, they must also take a financial literacy test. However, it is still not clear whether the ₹1 lakh limit will be based on CTC (Cost to Company) or net salary (in-hand pay).
What Benefits Will Companies Get?
Under the ELI scheme, companies will get an incentive of up to ₹3,000 per month for every new employee they hire. This incentive will be given to the company for 2 years. However, as per the scheme rules, the employee must work for at least 6 months. Only after completing 6 months will the employee get the first instalment of ₹15,000.
What If You Change Jobs?
If you leave your job before completing 12 months, you might not get the second instalment. The rule says that the money given in the 12th month is for your first job only. If you join another job before completing 12 months in the first one, then you may not meet the eligibility conditions. In this case, you may get only 50% of the ₹15,000 benefit. But if you complete one full year in your first company, you will get the full amount.
What Experts Say About the Scheme
Experts believe that this scheme is an important step toward bringing stability in jobs and increasing employment in the organised sector. If the government implements it properly, the scheme can become a strong way to create long-term jobs in India.