Mansukh Mandaviya, the current Minister of Labour and Employment on Tuesday met more than a dozen industry bodies and employer organisations to discuss and solicit answers and opinions on the employment-linked incentive scheme which was announced during the latest Annual Budget.
The Ministry of Labour and Employment is currently finalising three ELI schemes, which will be implemented through the Employees’ Provident Fund Organisation (EPFO). The ministry has already sought feedback from trade unions and is now engaging with employer representatives to refine the schemes.
Among the attendees were representatives from key industry bodies, including the Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI), Assocham, PHDCCI, All India Organisation of Employers (AIOE), Laghu Udyog Bharati, Indian Council of Small Industries (ICSI), Federation of Association of Small Industries of India (FASII), All India Association of Industries (AIAI), All India Manufacturers’ Organization (AIMO), Standing Conference of Public Enterprises (SCOPE), and the Employers Federation of India (EFI).
“Employment generation is a top priority for the government, and the ELI Scheme is a step in the right direction to achieve this goal,” said Minister Mandaviya, inviting suggestions from the organisations on the formulation of the scheme.
Following the meeting, the ministry issued a statement in which Minister Mandaviya underscored that the ELI scheme is designed to encourage businesses to create more employment opportunities and to provide meaningful and sustainable jobs for the youth.
“We are committed to working closely with stakeholders to design a scheme that is robust, inclusive, and aligned with the needs of the economy,” the Minister assured the employer representatives.
The three ELI schemes are part of the Prime Minister’s package of five initiatives aimed at facilitating employment, skilling, and other opportunities for 41 million youth over five years, with a central outlay of ₹2 lakh crore. These schemes are expected to generate over 20 million jobs within two years.
Scheme A proposes that the government will reimburse one month’s wage, up to ₹15,000, in three instalments, as a subsidy to individuals entering the workforce for the first time.
Scheme B, which targets bulk hiring of first-time workers in the manufacturing sector, will see the government reimbursing 24%, 24%, 16%, and 8% of the wage, to be equally shared between the employee and the employer, provided the employer hires 50 or 25% of its baseline employee strength under EPFO and retains them for at least 12 months.
Under Scheme C, the government will reimburse the employers’ share of EPFO, up to ₹3,000 per month for two years. This will apply to establishments that hire an additional two employees (if their headcount is less than 50) or five employees (if their headcount exceeds 50).
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