Abhyaspeeth Carrear Desk
New Delhi : In a major boost to youth employment, the Central Government has announced the launch of a new scheme that promises to reward first-time jobholders with a direct cash incentive of ₹15,000. This initiative, titled the Employment Linked Incentive (ELI) Scheme, will come into effect from August 1, 2025, and continue till July 31, 2027.
The scheme is aimed at fresh graduates and first-time salaried workers stepping into the formal workforce. With a massive budget allocation of ₹99,446 crore, the government plans to not only motivate young people to take up jobs in registered companies but also encourage employers to expand hiring in both manufacturing and services sectors.
Under this scheme, individuals joining formal employment for the first time—where their Employees’ Provident Fund (EPF) account is being created—will be eligible for a one-time incentive of ₹15,000, disbursed in two phases. The first installment will be given after six months of continuous employment, and the second after twelve months, provided the employee completes a financial literacy training module offered under the scheme.
What makes this scheme more attractive is its automation—no separate application is needed. Once an employee’s EPF account is opened and monthly deductions are recorded for six consecutive months, the incentive is automatically transferred to their account.
Importantly, the scheme defines a “first job” as the point at which an individual’s PF account is created for the very first time. Anyone who enters formal employment after August 1, 2025, and has never held a PF account before, will be considered eligible.
The benefits aren’t just for employees. Employers too stand to gain. For every new hire with a monthly salary between ₹20,000 and ₹1,00,000, the government will provide the employer with ₹3,000 per month for up to one year. In the case of employees earning less than ₹10,000 per month, the benefit will be adjusted proportionally.
However, the company must be registered under EPFO and meet a few conditions to participate. Firms with fewer than 50 employees will have to hire at least 2 new employees, while those with 50 or more must bring in at least 5 new hires to become eligible for the benefits. All newly hired workers must remain with the company for a minimum of six months.
This scheme is part of the government’s broader plan to generate employment, promote skill development, and strengthen India’s formal workforce. It comes at a crucial time when young professionals often face barriers in landing their first formal job, and businesses are still recovering from post-pandemic workforce gaps.
For students, recent graduates, and job seekers, this announcement offers both financial support and a strong reason to pursue jobs in companies that are part of the formal economy. In addition, the emphasis on financial literacy ensures that new earners start their careers on a sound financial footing.
With the ELI Scheme, the government is sending out a clear message: formal employment will be rewarded, and both young workers and responsible employers will be supported in building a stronger economic future.
