The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Employment Linked Incentive Scheme, aimed at expanding job opportunities across the country and directly benefiting youth entering the workforce for the first time. With a target of generating over 3.5 crore new jobs in two years, the government will invest ₹99,446 crore under this initiative, which is also expected to boost industrial growth.
Two Key Components of the Scheme:
1. Benefits for First-Time Employees:
- Eligible youth will receive one month’s salary up to ₹15,000 as an incentive.
- The amount will be disbursed in two instalments: the first after six months of continuous employment, and the second after one year.
- Beneficiaries will also receive financial literacy training to better manage their earnings.
- A portion of the amount will be held securely in their bank account, promoting a habit of savings.
- The scheme will directly benefit around 1.92 crore first-time job seekers.
2. Incentives for Companies:
- Companies offering continuous new employment will receive financial support from the government.
- The focus will be on encouraging job creation in manufacturing and industrial sectors.
This scheme is expected to strengthen the labour market and create long-term opportunities for both individuals and industries.
