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The Indian government has started a new scheme called the Employment Linked Incentive (ELI). It was first announced during the Union Budget on 23 July 2024 and now on 1 July it has been approved by the Cabinet. The goal of this scheme is to increase formal jobs by supporting both job seekers and employers with money. What is the ELI Scheme? The Employment Linked Incentive (ELI) scheme is a new plan by the government to encourage companies to give more people jobs. If a company hires more workers the government will give it some money as a reward. This will help young people who are starting their first job and will also support small and medium businesses (MSMEs). The scheme will also create more jobs in areas like factories (manufacturing) services and technology. It will start on 1 August 2025 and run till 31 July 2027. In these two years the goal is to create more than 3.5 crore new jobs. How will this scheme work? Part A: For First-Time Employees - This part is for people who are starting their first-ever job and are registered under EPFO (Employees’ Provident Fund Organisation). These employees will get up to Rs. 15000 as a salary support divided into two payments: First half – after 6 months of working Second half – after 12 months of working and completing a basic money management course (financial literacy) Some part of this money will be kept in a savings account or fixed deposit which the employee can use later. Part B: Support for Companies That Give Jobs - This part of the ELI scheme is to help companies that give jobs to more people especially in manufacturing. Who will get the benefit? Companies that hire workers with a salary of up to ₹1 lakh per month These companies will get Rs. 3000 per employee every month from the government This support will be given for 2 years and for manufacturing sector it can go on for 3rd and 4th years too What are the conditions? The company must be registered with EPFO (Employees’ Provident Fund Organisation) If the company has less than 50 workers it must hire at least 2 new people If the company has 50 or more workers it must hire at least 5 new people These new employees must work for at least 6 months How will the money be given? For employees (Part A): Money will be sent directly to their bank through DBT (Direct Benefit Transfer) using their Aadhaar-linked system For companies (Part B): Money will go directly to the bank account linked to the company’s PAN  What is the goal of this scheme? This scheme wants to: Create more jobs especially in factories and industries Help youth learn new skills and get ready for work Support small and medium businesses (MSMEs) which are the backbone of India’s economy Strengthen the ‘Make in India’ mission and turn India into a global manufacturing hub  Government also approved a new research scheme Along with the ELI scheme the government also approved a new plan called the Research Development and Innovation (RDI) Scheme. What is the RDI Scheme? It’s a plan to help private companies do more research and innovation The government has kept a big fund of Rs. 1 lakh crore for this Companies will get low-interest or no-interest loans for a long time This money will help them create new ideas technologies and products The goal is to boost research support new industries and help India become a global leader in technology and innovation