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July 2026·Note 11 of 25
Economy & DevelopmentPIB BriefPublished: 2026-07-24

Employment-Linked Incentive (ELI) Schemes & EPFO Integration

Source: PIB / Ministry of Finance

BudgetELI SchemeEPFOManufacturing

The Union Budget presented three flagship Employment-Linked Incentive (ELI) schemes designed to spur formal job creation by directly reimbursing EPFO employer and employee contributions for first-time entrants across manufacturing and corporate services.

  • Scheme A (First Timers): Direct benefit transfer of one-month wage (up to ₹15,000) in 3 instalments to newly enrolled EPFO employees earning up to ₹1 Lakh/month.
  • Scheme B (Job Creation in Manufacturing): Incentives directly linked to additional EPF/ESI hiring in manufacturing over a 4-year cycle.
  • Scheme C (Support to Employers): Government reimbursement of up to ₹3,000 per month towards employer EPFO contributions for each additional employee for 2 years.
  • Scheme delivery pipe leverages EPFO UAN database to ensure non-duplication and direct biometric tracking.

Practice Quiz for this Note

2 UPSC-pattern questions on this topic

Marking: +2.5 / −0.83
Question 1 of 2(0 answered, 2 remaining)
Question 1+2.5 / -0.83 Marks

Under the Employment-Linked Incentive (ELI) Scheme A for first-time formal employees, what is the maximum monthly wage ceiling for eligible entrants?

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