S76490
Employment Linked Incentive (ELI) Scheme
The Employment Linked Incentive (ELI) Scheme supports startups across all sectors, particularly in manufacturing, by providing financial incentives for hiring first-time employees and sustaining their employment. Eligible startups can receive up to ₹15,000 for each new employee over two years, along with additional benefits such as formalization of jobs and access to social security.
States / UT: All India
Ministry / nodal: Ministry of Labour & Employment, Government of India
Scheme for: Startups
Scheme profile
DBT (direct benefit transfer): No
Target beneficiaries: Startups
Tags: startups, All sectors, with a special focus on the manufacturing sector., Employment generation, Social security / Formalization of jobs, Financial assistance / Incentives (for both employee & employer), Skill / financial literacy component, Focus on first timers (new entrants to workforce)
Details
Brief
PM-VBRY is an employment‐linked incentive scheme (previously referred to as the ELI Scheme) approved by the Union Cabinet. It aims to generate over 3.5 crore jobs in India over a two-year period (from 1 August 2025 to 31 July 2027). The scheme provides incentives for both first‐time employees (to ease their entry into formal employment) and employers (to encourage new job creation). It is implemented by EPFO under the Ministry of Labour & Employment.
Tenure
- From 1 August 2025 to 31 July 2027 (2 years) during which jobs created will qualify for benefits.
Benefit tags
- Employment generation
- Social security / Formalization of jobs
- Financial assistance / Incentives (for both employee & employer)
- Skill / financial literacy component
- Focus on first timers (new entrants to workforce)
Benefits
- - Part A (for First-Time Employees): Eligible if salary ≤ ₹1,00,000 per month. Up to ₹15,000 incentive in two instalments. First instalment after 6 months of employment; second instalment after 12 months plus completion of a financial literacy programme. Some portion of the incentive will be kept in a savings instrument / deposit account for a fixed period; withdrawable later
- Part B (for Employers): For each additional employee hired (salary ≤ ₹1,00,000/month) with sustained employment of at least 6 months. Employers get up to ₹3,000 per month per new employee for two years. In the manufacturing sector, the incentives may extend into the 3rd and 4th year for sustained employment. Establishments must hire at least: 2 additional employees (if they have 5 additional employees (if they have ≥ 50 employees) and sustain for at least 6 months. Other Benefits / Features: Formalization of jobs including social security benefits. On job training and enhanced employability for first-timers. Use of Direct Benefit Transfer (DBT), Aadhaar Bridge Payment System (ABPS), PAN‐linked accounts for benefit disbursal
- Part A (for First-Time Employees): Eligible if salary ≤ ₹1,00,000 per month. Up to ₹15,000 incentive in two instalments. First instalment after 6 months of employment; second instalment after 12 months plus completion of a financial literacy programme. Some portion of the incentive will be kept in a savings instrument / deposit account for a fixed period; withdrawable later.
- Part B (for Employers): For each additional employee hired (salary ≤ ₹1,00,000/month) with sustained employment of at least 6 months. Employers get up to ₹3,000 per month per new employee for two years. In the manufacturing sector, the incentives may extend into the 3rd and 4th year for sustained employment. Establishments must hire at least: 2 additional employees (if they have 5 additional employees (if they have ≥ 50 employees) and sustain for at least 6 months. Other Benefits / Features: Formalization of jobs including social security benefits. On job training and enhanced employability for first-timers. Use of Direct Benefit Transfer (DBT), Aadhaar Bridge Payment System (ABPS), PAN‐linked accounts for benefit disbursal.
Eligibility
- From 1 August 2025 to 31 July 2027 (2 years) during which jobs created will qualify for benefits.
Application Process
Online / portal
Official application / information link: https://pmvbry.labour.gov.in/
Source listing: https://www.startupindia.gov.in/content/sih/en/government-schemes.html
Official links
References
- Startup India — Central government schemes for startups
- https://www.startupindia.gov.in/content/sih/en/government-schemes.html
- Application / official link
- https://pmvbry.labour.gov.in/
Apply
Apply nowOpens the official application or programme portal in a new tab. If in doubt, confirm details on the ministry site.
Frequently asked questions
- What is the purpose of Employment Linked Incentive (ELI) Scheme?
- Employment Linked Incentive (ELI) Scheme is a government welfare initiative designed to support Startups, Startups through benefits related to Startups & entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
- Who can apply for Employment Linked Incentive (ELI) Scheme?
- Eligibility for Employment Linked Incentive (ELI) Scheme may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
- What benefits are offered under Employment Linked Incentive (ELI) Scheme?
- Benefits under Employment Linked Incentive (ELI) Scheme may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
- Which department manages Employment Linked Incentive (ELI) Scheme?
- Employment Linked Incentive (ELI) Scheme is managed by Ministry of Labour & Employment, Government of India and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
- Can users apply online for Employment Linked Incentive (ELI) Scheme?
- Yes, eligible applicants may be able to apply online for Employment Linked Incentive (ELI) Scheme through official government portals, authorised service centres, or digital application systems depending on the implementation process.
- Is Aadhaar mandatory for Employment Linked Incentive (ELI) Scheme?
- Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
- Where can users apply for Employment Linked Incentive (ELI) Scheme?
- Applications for Employment Linked Incentive (ELI) Scheme may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
- What documents may be required for Employment Linked Incentive (ELI) Scheme?
- Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
- Is Employment Linked Incentive (ELI) Scheme a central government scheme?
- Yes, Employment Linked Incentive (ELI) Scheme is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
- Does Employment Linked Incentive (ELI) Scheme provide business loan or startup assistance?
- Employment Linked Incentive (ELI) Scheme may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
- Is collateral required under Employment Linked Incentive (ELI) Scheme?
- Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
- Can CSC centres help users apply for Employment Linked Incentive (ELI) Scheme?
- Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
- How can users check the latest updates for Employment Linked Incentive (ELI) Scheme?
- Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
- Can beneficiaries track application status for Employment Linked Incentive (ELI) Scheme?
- Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
- Where can users get help for Employment Linked Incentive (ELI) Scheme in All India?
- Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
- Which nearby public services may help with Employment Linked Incentive (ELI) Scheme applications?
- Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.