<ul data-eligibleForWebStory="false"><li>The Union Cabinet has approved a Rs 1 trillion Employment-Linked Incentive (ELI) scheme to generate 35 million new jobs in two years, focusing on formal employment and aiding first-time job seekers, notably in the manufacturing sector.</li><li>The scheme offers financial support to first-time employees registering with the Employees' Provident Fund Organisation (EPFO), with direct incentives of up to Rs 15,000 per employee based on salary brackets, targeting those earning up to Rs 1 lakh per month.</li><li>Employers are required to meet minimum hiring quotas; small businesses must hire two additional employees, while larger firms need to recruit five or more. The government will provide incentives of Rs 1,000 to Rs 3,000 per new hire based on wage levels to incentivize employers.</li><li>This initiative aims to combat youth unemployment and stimulate job growth, particularly in manufacturing, with incentives applicable to new positions created between August 1, 2025, and July 31, 2027, supporting workforce formalization and aligning with youth-centric schemes outlined in the Union Budget.</li></ul>

Union Cabinet’s employment incentive scheme to create 35 mn jobs

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