Update on Government of India “Employment Link Incentive” Scheme – 2024. As per Finance Minister announcement during the budget for FY 2024-2025 pertaining to “Employment Link Incentive” scheme for Employers, EPFO (Nodel Agency for Implementation of ELI Scheme) has issued ELI scheme benefits details in 3 categories as below :
Scheme A : First Timers
- Applicable to first time EPFO Subscribers with salary up to Rs. 1 lac per month.
- Scheme enrollment duration period – 2 years.
- Scheme benefit period – 3 years.
- Rs. 15,000 wages to be paid by Government of India in 3 installment.
- Minimum 12 month Job duration compulsory require failing which subsidy to be refunded.
- 2nd Installment to be paid after financial literacy training attend by beneficiary employee.
Scheme B : Job Creation in Manufacturing
- This benefit is only for Employer in Manufacturing Sector.
- Applicable to first time EPFO Subscribers with salary up to Rs. 1 lac per month.
- Compulsory Maintained threshold level of enhanced employment throughout Benefit period.
- Only for Direct payroll employees not for contractual employees.
- Scheme enrollment period – 2 years
- Scheme benefit period – 4 years.
- Benefit 1st & 2nd year 12% Employee + 12% Employer PF contribution to be paid by Govt. of India.
- 3rd Year 8% Employee + 8% Employer PF contribution to be paid by Govt. of India.
- 4th Year 4% Employee + 4% Employer PF contribution to be paid by Govt. of India.
- Minimum 12 month Job duration compulsory require failing which subsidy to be refunded.
Scheme C: Support to Employers
- This benefit for Employer of all sectors.
- EPFO will reimburse Employer PF contribution for additional employees hire in previous year.
- Scheme enrollment period – 2 years.
- Scheme benefit period –4 years for less than 1,000 new job creation & 6 years for more than 1,000 Job creation.
- Compulsory Maintained threshold level of enhanced employment throughout Benefit period.
- For creating more than 1000 job, reimbursement will be on quarterly basis.
- For creating less than 1000 job, reimbursement will be on monthly basis.
- Subsidy 1st & 2nd Year 12 % Employer PF Contribution (Subject to Maximum Rs. 3,000/- per employee per month).
- 3rd year 8% Employer PF Contribution & 4th year 4% Employer PF Contribution (Subject to Maximum Rs. 3,000/- per employee per month).