India launches major job incentive scheme for first-time workers and businesses

The Indian government has approved a new programme called the Employment Linked Incentive (ELI) Scheme, aimed at creating jobs and improving social security. The plan was approved by the Union Cabinet, led by Prime Minister Narendra Modi, reports ANI, a partner of TV BRICS.

The scheme focuses on helping both people who are entering the workforce for the first time and the employers who hire them. It places special attention on supporting the manufacturing sector.

The government expects the ELI Scheme to create over 35 million jobs within two years.

These workers will receive a financial incentive equal to one month’s wage, paid in two parts: half after six months of employment and the rest after twelve months.

Employers who hire new workers will also receive incentives. This support will last for two years, and up to four years for manufacturing companies.

To qualify, small businesses (with fewer than 50 employees) must hire at least two new workers, while larger firms must hire at least five.

The government hopes that this scheme will not only create jobs but also encourage more people to enter formal, secure employment. The wage-based incentive system is designed to encourage businesses to hire more workers and help reduce unemployment across different sectors.