Why in the News?
The Union Cabinet has approved the Employment Linked Incentive (ELI) Scheme to promote job creation, enhance employability, and expand social security—especially in the manufacturing sector.
About Employment Linked Incentive (ELI) Scheme:
- Objective: It aims to promote employment generation, enhance employability, and expand social security across all sectors, with a special focus on the manufacturing sector.
- Inception: The scheme was first announced in the Union Budget 2024–25 as part of the Prime Minister’s ₹2 lakh crore Employment and Skilling Package, which targets 4.1 crore youth.
- Goal: It seeks to create more than 3.5 crore jobs between 1st August 2025 and 31st July 2027.
Key Features of the ELI Scheme:
- It offers direct financial incentives to both first-time employees and employers to promote formalisation and sustained employment. It has 2 major components:
- Part A – Incentives to First-Time Employees:
- One-month EPF wage (up to ₹15,000) in two instalments.
- First instalment after 6 months of continuous service.
- Second instalment after 12 months and completion of a financial literacy programme.
- Eligibility for employees earning up to ₹1 lakh/month.
- Portion of incentive saved in a deposit instrument.
- Benefits to approximately 1.92 crore new employees.
- Part B – Support to Employers:
- Incentives for employers hiring additional employees with salaries up to ₹1 lakh/month.
- Amount ranges from ₹1,000 to ₹3,000 per employee per month, based on wage slabs.
- Employment must be sustained for at least 6 months.
- Manufacturing sector gets incentives for 4 years instead of 2.
- Employers must hire:
- At least 2 additional employees (if workforce < 50).
- At least 5 additional employees (if workforce ≥ 50).
- Payment Mechanism:
- Employees: via Direct Benefit Transfer (DBT) through Aadhaar Bridge Payment System (ABPS).
- Employers: via PAN-linked accounts.
| [UPSC 2024] With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements:
1. The entry age group for enrolment in the scheme is 21 to 40 years 2. Age specific contribution shall be made by the beneficiary 3. Each subscriber under the scheme shall receive a minimum pension of ₹ 3,000 per month after attaining the age of 60 years 4. Family pension is applicable to the spouse and unmarried daughters Options: (a) 1 and 4 (b) 2 and 3* (c) 2 only (d) 1,2 and 4 |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
