New Delhi: The central government has announced a significant incentive to encourage employment among the country’s youth. Under this initiative, eligible youth entering formal employment for the first time will receive an incentive of ₹15,000. The government estimates that approximately 19.2 million youth will benefit from this scheme.
The focus will be on increasing employment
The primary objective of the ELI scheme is to encourage youth to seek employment in the organized sector and to develop a skilled workforce in the country. This scheme is considered an important step towards employment generation as well as bringing workers under the social security umbrella. The government has allocated ₹99,446 crore for this scheme.
Benefits for first-time job seekers
Under the scheme, young people who begin employment for the first time at an EPFO-registered organization will be eligible for benefits. The incentive of ₹15,000 will be distributed to eligible employees not in one lump sum but in two installments. The first installment will be released upon completion of six months of employment, and the second installment will be released after completion of 12 months of service and the prescribed financial literacy program.
Companies will also get incentives
The government has provided incentives not only for employees but also for companies making new hires. Eligible organizations will receive monthly financial assistance based on each new hire. A maximum of ₹1,000 per employee with a salary up to ₹10,000, ₹2,000 per employee with a salary of ₹10,000 to ₹20,000, and ₹3,000 per employee with a salary of ₹20,000 to ₹1 lakh per month. This is intended to encourage companies to recruit more new hires.
Who will be able to avail the benefits of the scheme?
Some key conditions have been fixed to avail the benefits of the scheme:
The applicant should be doing formal job for the first time.
The monthly salary of the employee should not exceed Rs 1 lakh.
The employee has joined EPFO for the first time.
It will be necessary to work continuously for at least 6 months.
The company in which the appointment is made must be registered with EPFO.