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New EPF Incentive Scheme 2025: How Can First-Time Employees & Employers Benefit?

To tackle unemployment and boost formal job creation, the Indian Government has launched two Employment Linked Incentive (ELI) schemes effective from August 1, 2025. With a budget of ₹99,446 crore, these schemes aim to support first-time employees and employers expanding their workforce.

Why Is This Important for Competitive Exams?
Government schemes like ELI frequently appear in SSC, PSC, and design entrance exams (NID/NIFT/FDDI) under current affairs or general knowledge sections. Understanding these policies helps in:
Descriptive answers on employment initiatives.
MCQs related to EPF, budget allocations, and eligibility.
Interviews where socio-economic awareness is tested.

Key Features of the Employment Linked Incentive Schemes
1. Scheme A: Financial Support for First-Time Employees
Who’s Eligible? New employees earning ≤₹1 lakh/month.
Incentive: One month’s EPF wage (max ₹15,000) in two instalments:
50% after 6 months of employment.
Remaining 50% after 12 months, deposited into a savings instrument.
Condition: Completion of a financial literacy program.
Beneficiaries: Expected to aid 1.92 crore first-time job seekers.

Why It Matters:
Reduces financial stress for freshers entering formal employment.
Encourages EPF enrollment, ensuring long-term social security.
2. Scheme B: Incentive for Employers Hiring Additional Staff
For Non-Manufacturing Sectors: ₹3,000/month per new employee for 2 years.
For Manufacturing Sectors: ₹3,000/month per new employee for 4 years.
Example: A manufacturer hiring 100 workers can receive ₹1.44 crore over 4 years.
Condition: Employees must retain jobs for at least 6 months.
Impact: Expected to generate 2.6 crore new jobs by 2027.

Sample Questions & Answers for Competitive Exams
Q1. What is the maximum incentive a first-time employee can receive under Scheme A?
A: ₹15,000 (one month’s EPF wage).
Q2. Which sector gets extended incentives under Scheme B?
A: Manufacturing (4 years vs. 2 years for non-manufacturing).
Q3. What is the total budget allocated for the ELI schemes?
A: ₹99,446 crore.
Q4. How is the Scheme A incentive disbursed?
A: Via Direct Benefit Transfer (DBT) using Aadhaar Bridge Payment System.
Q5. Name one condition to avail the second instalment under Scheme A.
A: Completion of a financial literacy program.

Final Thoughts
The ELI schemes reflect the government’s push for sustainable employment and financial inclusion. For exam aspirants, staying updated on such policies is crucial for GK sections and interviews.
Pro Tip: Revise similar schemes like PLI (Production Linked Incentive) for comparative analysis in descriptive answers.