Modi Government’s ELI Scheme: The Modi government has recently launched a new scheme ‘The Employment Linked Incentive Scheme’ i.e. ‘ELI’ in the Union Budget 2024. The aim of this scheme is to promote exports by giving incentives to manufacturers and exporters. The government believes that this will give a good hold to Indian products in the market, strengthen domestic industries, and also increase foreign exchange.
To implement this scheme in a better way, the government has also allocated funds to different ministries. The Ministry of Corporate Affairs has been given Rs 2,000 crore to increase internship opportunities for youth in 500 companies. Similarly, the Ministry of Labor has got Rs 10,000 crore to implement the rest of the policies related to ELI.
ELI is a group of three different schemes:
The ELI scheme is a group of three different schemes. Under the first scheme, the government will give a part of the salary to the employees starting the job. The second scheme aims to create new employment opportunities in the manufacturing sector. Financial assistance will be provided to employers through the third scheme.
1- Wage Subsidy:
The first scheme, named ‘Wage Subsidy’, aims to benefit about 1 crore employees. This scheme will run for two years. In this, financial assistance of up to Rs 15,000 will be given in three installments to those new employees whose monthly salary is up to Rs 1 lakh. To get the second installment, the candidate will have to complete an online financial literacy course. If the job is lost before 12 months, then the company will have to return the subsidy.
2- Employment in Manufacturing Sector:
The second scheme ‘Employment in Manufacturing Sector’ aims to encourage employers working in this sector. To avail of this scheme, employers must have a track record of at least three years in EPFO. Apart from this, they will have to hire at least 50 non-EPFO employees or 25 percent of the number of EPFO employees of the previous year (whichever is less). Under this scheme, the subsidy will be paid for four years and it will be divided equally between the employee and the employer. The subsidy will be calculated based on salary.
Read More: UCIL Recruitment 2024: Apply for Various Posts at Uranium Corporation
3- Support to Employer:
The third scheme ‘Support to Employer’ is especially for those employers who increase the number of their employees. Under this, employers will get reimbursement of up to Rs 3,000 every month on EPFO employer contributions for two years. However, there are some conditions for this. Employers who have less than 50 employees will have to hire at least two new employees. Those who have 50 or more employees will have to hire at least five new employees.
If a company creates more than 1000 jobs, then the reimbursement will be done on a quarterly basis. This reimbursement will be done as per the previous quarter. In this, employers who are taking advantage of the ‘second scheme’ cannot take advantage of this scheme. However, those who are taking advantage of the first scheme, i.e. ‘Scheme A’, can take advantage of this scheme as an additional benefit.