Employees’ Provident Fund Organisation (EPFO) Regional Office in Mangaluru has announced a bold target to enrol 25,000 first-time employees under the newly launched Employment-Linked Incentive (ELI) Scheme, aimed at accelerating formal job creation across the Dakshina Kannada region.
The initiative is part of a nationwide rollout of the ELI scheme, introduced in the Union Budget 2024–25, and will be effective from August 1, 2025, to July 31, 2027.
The scheme offers financial incentives to both employers and employees, encouraging the transition from informal to formal employment and expanding social security coverage.
ELI Scheme Highlights: Dual Incentives for Employers and Employees
First-time employees earning up to ₹1 lakh per month are eligible for a one-month wage incentive under the ELI scheme, capped at ₹15,000.
This amount will be disbursed in two instalments—after six months and twelve months of continuous employment.
To qualify, employees must be newly enrolled with EPFO and complete a financial literacy program before receiving the second instalment.
Employers will receive up to ₹3,000 per month for each additional employee they hire.
This benefit will last for two years and may be extended to four years for those operating in the manufacturing sector.
The incentive is designed to encourage sustained hiring and retention of new employees.
Eligibility and Compliance Criteria
To avail the benefits, employers must meet specific hiring thresholds:
- Firms with fewer than 50 employees must hire at least two additional workers
- Firms with 50 or more employees must recruit a minimum of five new employees
- These additional hires must be retained for at least six months to qualify for incentives
Employees must activate their Universal Account Number (UAN) and link their Aadhaar and bank account to receive subsidies via Direct Benefit Transfer (DBT).
EPFO Regional Outreach and Implementation Strategy
EPFO Mangaluru is led by Regional PF Commissioner Rajib Mukherjee. During FY2025–26, the office plans to engage with 2,500 firms and organizations across Dakshina Kannada.
The office will conduct awareness camps, employer briefings, and compliance workshops to ensure smooth implementation and maximize enrolment.
Rajib emphasized that the scheme serves as more than just a financial incentive.
It is also a strategic tool designed to formalize employment, enhance social security, and build a skilled workforce in the region.
National Context and Long-Term Impact
The government has launched a broader initiative to generate 3.5 crore jobs over a two-year period.
As part of this plan, it has allocated a total budget outlay of ₹99,446 crore to support employment schemes like ELI.
Of these, 1.92 crore beneficiaries are expected to be first-time employees.
The scheme is also aligned with India’s push for manufacturing growth, youth employment, and financial inclusion.
The scheme incentivizes structured hiring and retention to reduce hiring friction and promote job stability.
It also aims to extend EPFO benefits to millions of workers who were previously outside the formal sector.
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