ELI Scheme 2026: Complete Guide to Employment Linked Incentive SchemePM Viksit Bharat Rozgar Yojana
Aapne TV pe suna hoga "Sarkar de rahi hai naukri ke liye paise!" Sounds too good to be true? Well, this time it is very much real. The Employment Linked Incentive (ELI) Scheme, now officially renamed PM Viksit Bharat Rozgar Yojana is one of the biggest government employment schemes India has ever launched. Whether you are a fresh graduate looking for your first job, a small factory owner in a tier-3 town, or a startup founder trying to grow your team, this scheme has something for you. With an outlay of ₹99,446 crore, the ELI Scheme aims to incentivize the creation of more than 3.5 crore jobs across the country over a period of two years. That is a staggering number and if you are not aware of this scheme yet, you are potentially leaving free money on the table. This blog is your one-stop guide to understanding what the ELI scheme is, who qualifies, how much money you can actually get, how to apply, and why this scheme could be a difference-maker for India's workforce and startup ecosystem. Let's break it all down bilkul seedha, bilkul simple.
Benefits of the ELI Scheme
One Month's Wage for First-Time Employees
First-time employees will receive one month's EPF wage up to ₹15,000, paid in two installments. This is direct money in your Aadhaar-linked bank account DBT se seedha.
Employer Incentive up to ₹3,000 Per Month Per Employee
Employers will be given incentives for a period of two years for generating additional employment, with extended benefits for another two years for the manufacturing sector. The government will incentivize employers, up to ₹3,000 per month, for two years, for each additional employee with sustained employment for at least six months.
Massive Job Creation Push
The scheme aims to create more than 3.5 crore jobs over a period of two years, from August 1, 2025, to July 31, 2027, and bring 1.92 crore first-time employees into the formal workforce.
Social Security Coverage
The ELI Scheme promotes job formalisation and improves access to social security by ensuring eli scheme EPFO registration and Aadhaar-based identification. This means more people will now have PF, insurance, and formal employment rights.
Financial Literacy for New Workers
To encourage the habit of saving, a portion of the incentive will be kept in a savings instrument or deposit account for a fixed period and can be withdrawn by the employee at a later date.
Special Push for Manufacturing Sector
Special focus on the manufacturing sector incentives are extended to the 3rd and 4th year for employers in manufacturing. This is a massive booster for Make in India.
Coverage Across All Sectors
Incentives are applicable across all sectors nationwide not just manufacturing. IT, retail, hospitality, textiles, food processing everyone can benefit.
ELI Scheme At a Glance Key Data Table
How to Apply for the ELI Scheme Step by Step
Ensure EPFO Registration
The very first step for both employers and employees is being registered with the Employees' Provident Fund Organisation (EPFO). EPFO registration and Aadhaar seeding must be completed to be eligible for benefits. Agar aapki company EPFO mein registered nahi hai, toh pehle woh karo.
Link Aadhaar to Bank Account (For Employees)
All payments to first-time employees under Part A of the scheme will be made through DBT (Direct Benefit Transfer) mode using the Aadhaar Bridge Payment System (ABPS). So make sure your Aadhaar is seeded with your active bank account this is non-negotiable.
Verify First-Time Employee Status (For Part A)
Scheme A targets first-time employees joining PF for the first time on or after 1 August 2025, with gross wages up to ₹1 lakh/month. If you have never had a PF account before and your salary is within this limit you automatically qualify.
Establish Your Baseline Headcount (For Employers)
Eligibility for Scheme B is based on hiring above the baseline employee headcount from 1 August 2024 to 31 July 2025. Employers must calculate the average number of employees during this reference period. Only new hires beyond this baseline qualify for the incentive.
Meet the Minimum Hiring Threshold
Employers hiring at least 2 additional employees (if the current workforce is less than 50) or 5 additional employees (if the workforce is 50 or more) are eligible. Small startups and MSMEs have a much lower bar to cross sirf 2 log hire karo aur benefit milna shuru.
Ensure Sustained Employment of 6 Months
Incentive eligibility applies to employees who are retained for at least six months. Simply hiring and terminating employees quickly will not qualify. Genuine, sustained employment is the core requirement jo ki ek achhi baat bhi hai.
File Accurate ECR (Electronic Challan cum Return)
Monthly variability in eligibility and the dependency on accurate ECR filings make it critical for establishments to navigate compliance and optimize incentives. Your monthly ELI scheme EPFO filings must be precise and timely. This is where professional help becomes very important.
Receive Payment Automatically
Upon completion of 6 months in service, the central government will release the first installment of the financial incentive in the Aadhaar-linked bank account of the employee. The second installment will be released upon completion of 12 months of service and completion of the financial literacy programme. Payments to employers under Part B are made directly into their PAN-linked accounts.
Ensure EPFO Registration
The very first step for both employers and employees is being registered with the Employees' Provident Fund Organisation (EPFO). EPFO registration and Aadhaar seeding must be completed to be eligible for benefits. Agar aapki company EPFO mein registered nahi hai, toh pehle woh karo.
Link Aadhaar to Bank Account (For Employees)
All payments to first-time employees under Part A of the scheme will be made through DBT (Direct Benefit Transfer) mode using the Aadhaar Bridge Payment System (ABPS). So make sure your Aadhaar is seeded with your active bank account this is non-negotiable.
Verify First-Time Employee Status (For Part A)
Scheme A targets first-time employees joining PF for the first time on or after 1 August 2025, with gross wages up to ₹1 lakh/month. If you have never had a PF account before and your salary is within this limit you automatically qualify.
Establish Your Baseline Headcount (For Employers)
Eligibility for Scheme B is based on hiring above the baseline employee headcount from 1 August 2024 to 31 July 2025. Employers must calculate the average number of employees during this reference period. Only new hires beyond this baseline qualify for the incentive.
Meet the Minimum Hiring Threshold
Employers hiring at least 2 additional employees (if the current workforce is less than 50) or 5 additional employees (if the workforce is 50 or more) are eligible. Small startups and MSMEs have a much lower bar to cross sirf 2 log hire karo aur benefit milna shuru.
Ensure Sustained Employment of 6 Months
Incentive eligibility applies to employees who are retained for at least six months. Simply hiring and terminating employees quickly will not qualify. Genuine, sustained employment is the core requirement jo ki ek achhi baat bhi hai.
File Accurate ECR (Electronic Challan cum Return)
Monthly variability in eligibility and the dependency on accurate ECR filings make it critical for establishments to navigate compliance and optimize incentives. Your monthly ELI scheme EPFO filings must be precise and timely. This is where professional help becomes very important.
Receive Payment Automatically
Upon completion of 6 months in service, the central government will release the first installment of the financial incentive in the Aadhaar-linked bank account of the employee. The second installment will be released upon completion of 12 months of service and completion of the financial literacy programme. Payments to employers under Part B are made directly into their PAN-linked accounts.
Documents Required for ELI Scheme Benefits
Identity & KYC Documents
Aadhaar Card and PAN Card are mandatory for identity verification, account linking, and smooth processing of benefits. Employees need Aadhaar-linked details, while employers require PAN-linked business verification for incentive credits.
EPFO & Employment Verification
Documents like the EPFO Registration Certificate and UAN help verify PF membership and confirm that the employee is officially registered under EPFO. These records ensure eligibility under the scheme.
Bank Account & Payment Compliance
Employees must have an active Aadhaar-linked bank account to receive DBT payments, while employers need a PAN-linked business account for incentive transfers. Proper bank linkage is essential for successful payment processing.
Salary, Payroll & Joining Records
Salary slips, payroll data, ECR filing records, and employee joining documents are used to confirm first-time employment status and verify that wages fall within the eligible limit of ₹1 lakh per month.
Training & Financial Literacy Compliance
Employees are required to complete the Financial Literacy Programme to qualify for the second installment release. The certificate acts as proof of successful participation and compliance with scheme requirements.
ELI Scheme Parts Explained Benefit Comparison
FAQs
ELI Scheme & Startups Why This Is Big for You
If you are a startup founder especially an early-stage one here is why the ELI scheme should be on your radar right now:
Your first 5–10 hires qualify immediately if they are first-time EPFO members earning under ₹1 lakh/month
You get ₹3,000/month per qualifying employee that is ₹36,000 per person per year back in your pocket
Over two years, a startup with 10 qualifying employees could recover ₹7.2 lakh in government incentives
This money can fund more hiring, product development, or operational costs
Startups that get DPIIT recognition through Startup India are already on the right compliance track registering with EPFO becomes a natural extension of that journey. StartupFlora can help you connect the dots between your Startup India registration, MSME/Udyam registration, and ELI scheme eligibility so you don't miss any benefit that's meant for you.
Conclusion
he ELI Scheme or PM Viksit Bharat Rozgar Yojana is not just another sarkari yojana that looks good on paper and disappears in red tape. With an outlay of ₹99,446 crore and a target to incentivize creation of more than 3.5 crore jobs in just two years, this is one of the most well-funded and directly impactful employment schemes India has launched in recent memory.
For first-time job seekers especially those coming from rural areas, small towns, and lower-income backgrounds this scheme means your first job comes with a ₹15,000 government bonus. Seedha account mein. For startup founders and MSME owners, every new hire you make from August 2025 to July 2027 could bring you ₹3,000 per month per employee money that can fund your next hire, your product, or your operations.
But and this is important the scheme requires proper EPFO compliance, accurate filings, and timely Aadhaar-linking. Miss any one step and the benefit falls away. This is exactly where expert guidance from a team like StartupFlora makes all the difference. Whether you are registering your startup, getting DPIIT recognition, enrolling in Udyam, or setting up EPFO-compliant payroll doing it right the first time saves you time, money, and frustration.
Disclaimer: StartupFlora is a consultancy service provider specializing in startup consultation. We are not associated or in collaboration with any Government/Non-Government Agency / Institutions / Organisation / Department. All approvals and disbursements under the ELI Scheme are at the sole discretion of the Ministry of Labour & Employment and EPFO. For service payments, please ensure all transactions are made directly to our official company account.