Tue Jul 01 10:03:12 UTC 2025: **Summary:**
The Union Cabinet approved several schemes, including the Employment Linked Incentive (ELI) Scheme, with an outlay of ₹1.07 lakh crore. The ELI Scheme aims to incentivize job creation by providing financial support to employers and first-time employees. First-time employees will receive one month’s wage (up to ₹15,000), and employers will receive incentives for generating additional employment, with extended benefits for the manufacturing sector. The scheme intends to create over 3.5 crore jobs in two years, with 1.92 crore being first-timers. The benefits apply to jobs created between August 1, 2025, and July 31, 2027. In addition to ELI, the cabinet also approved the National Sports Policy 2025, a Research Development and Innovation scheme, and the four-laning of the Paramakudi-Ramanathapuram national highway.
**News Article:**
**Cabinet Approves ₹1.07 Lakh Crore Employment Incentive Scheme**
**New Delhi, July 1, 2025:** In a significant move aimed at boosting employment generation, the Union Cabinet today approved the Employment Linked Incentive (ELI) Scheme with an outlay of ₹1.07 lakh crore. Union Minister Ashwini Vaishnaw announced the decision at a press conference in New Delhi, stating the scheme aims to create over 3.5 crore jobs in the next two years.
The ELI Scheme, a key component of the Union Budget 2024-25, will provide financial incentives to both employers and first-time employees. Under the scheme, new recruits will receive one month’s wage, capped at ₹15,000. Employers who generate additional employment will also receive incentives for a period of two years, with extended benefits for the manufacturing sector. To qualify, employees must be enrolled in EPFO and meet Aadhaar-bank seeding requirements.
The government anticipates that 1.92 crore of the jobs created will be for first-time entrants into the workforce. The ELI Scheme will be applicable to jobs created between August 1, 2025, and July 31, 2027.
“With the ELI Scheme, the government intends to catalyse job creation in all sectors, particularly in the manufacturing sector, besides incentivizing youth joining the workforce for the first time,” said Mr. Vaishnaw.
In addition to the ELI Scheme, the Union Cabinet also greenlit the National Sports Policy 2025, a new Research Development and Innovation scheme, and the four-laning of the Paramakudi-Ramanathapuram national highway, marking a comprehensive push for growth across multiple sectors.
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