Employment Linked Incentive Scheme (ELI) — Benefits & Eligibility

The Employment Linked Incentive (ELI) Scheme is a government-backed initiative designed to promote job creation by providing financial incentives to businesses that generate incremental employment. This scheme encourages organisations to expand their workforce, thereby addressing unemployment and boosting economic growth in India.

Under the ELI Scheme, employers who meet specific criteria can receive monetary incentives based on the number of new jobs created. These incentives are aimed at reducing the financial burden on businesses, enabling them to invest in hiring, training, and retaining employees.

For employees, the scheme opens doors to new opportunities by increasing the availability of jobs across various sectors. With a focus on inclusivity, the ELI Scheme also promotes the hiring of underrepresented groups, such as women and differently-abled individuals.

Key Highlights of the ELI Scheme:

• Financial support for businesses creating incremental employment.
• Encouragement of job creation across diverse sectors.
• Focus on inclusivity and equal opportunities for all.

By understanding the framework of the ELI Scheme, businesses and employees alike can benefit from its offerings.

Benefits for businesses and employees

The ELI Scheme is a win-win for both employers and employees. Let us explore how this initiative benefits each group:

Benefits for Businesses (Employers)

1. Financial Incentives: Employers receive monetary rewards for generating new jobs, reducing the cost of workforce expansion.
2. Growth Opportunities: The scheme enables businesses to scale operations by hiring skilled employees without financial strain.
3. Sector-Specific Support: Industries with high employment potential, such as manufacturing and IT, gain targeted benefits.
4. Improved Brand Image: Participating in a government-supported initiative enhances the organisation’s reputation and credibility.

Benefits for Employees

1. Increased Job Opportunities: The scheme creates a surge in job availability, offering better employment prospects.
2. Skill Development: Many employers provide training and upskilling opportunities to new hires, enhancing their career growth.
3. Inclusive Hiring Practices: The scheme encourages the inclusion of diverse groups, promoting equality in the workplace.
4. Economic Stability: With more job opportunities, individuals can achieve financial security and contribute to the economy.

By bridging the gap between employers and job seekers, the ELI Scheme fosters a thriving employment ecosystem.

The ELI Scheme is designed with specific objectives to address key employment challenges and drive economic growth. These include:

• Job Creation: Encourage businesses to generate new employment opportunities.
• Economic Growth: Support industries in expanding operations and contributing to GDP growth.
• Inclusivity: Promote the hiring of underrepresented groups, including women and differently-abled individuals.
• Skill Development: Facilitate training and upskilling for employees to meet industry demands.
• Sectoral Support: Focus on sectors with high potential for employment generation.

These objectives align with the government’s vision of creating a robust and inclusive employment landscape in India.

Key features and eligibility criteria

Key Features of the ELI Scheme

• Incentive-Based Model: Monetary benefits are awarded based on the number of incremental jobs created.
• Sector-Specific Focus: Priority is given to industries with high employment potential, such as manufacturing, IT, and textiles.
• Inclusivity: Special incentives for hiring women and differently-abled individuals.
• Transparent Process: Clear guidelines and eligibility criteria ensure fairness in the distribution of incentives.

Eligibility Criteria

To qualify for the ELI Scheme, businesses must meet the following criteria:

• Be registered under relevant government authorities.
• Create a minimum number of incremental jobs as specified by the scheme.
• Ensure compliance with labour laws and regulations.
• Provide evidence of new job creation through official documentation.

By meeting these requirements, businesses can unlock the financial benefits offered under the ELI Scheme.

Eligible sectors under the scheme

The ELI Scheme focuses on industries with significant potential for job creation. Below is a summary of eligible sectors and their criteria:

These sectors have been identified based on their capacity to drive economic growth and create employment opportunities.

How to apply for employment linked incentives

Applying for the ELI Scheme is a straightforward process. Follow these steps to get started:

1. Register Your Business: Ensure that your organisation is registered with the relevant government authorities.
2. Check Eligibility: Verify that your business meets the eligibility criteria outlined by the scheme.
3. Prepare Documentation: Gather necessary documents, such as proof of new job creation and compliance with labour laws.
4. Submit Application: Apply online through the designated government portal, providing all required details and documents.
5. Await Approval: Once submitted, your application will be reviewed, and you will be notified of the status.

By following these steps, businesses can seamlessly apply for the ELI Scheme and avail its benefits.

Incentive calculation and disbursement

The calculation and disbursement of incentives under the ELI Scheme are based on specific criteria. Below is an overview:

These incentives are disbursed directly to the employer’s bank account upon approval.

Bajaj Finserv provides tailored financial solutions to help businesses leverage the ELI Scheme. Whether you need funds to hire new employees or expand operations, Bajaj Finserv offers loans with competitive interest rates and flexible repayment options.

For instance, a manufacturing company looking to hire 100 new employees can avail of a Bajaj Finserv Business Loan to cover recruitment and training costs. With quick approvals and minimal documentation, businesses can focus on growth without financial constraints.

Explore Bajaj Finserv’s financial products to maximise the benefits of the ELI Scheme and drive your business forward.

Success stories from employment linked incentive scheme

The ELI Scheme has transformed the employment landscape in India. For example, a textile company in Gujarat hired 500 new employees under the scheme, receiving Rs. 25 lakh in incentives. This financial support enabled the company to expand operations and contribute to local employment.

Such success stories highlight the scheme’s impact on businesses and communities, inspiring others to participate and reap its benefits.

Employment Linked Incentive vs. Other PLI Schemes

While both schemes aim to boost economic growth, the ELI Scheme prioritises employment generation.