Government launches ₹99,446 crore employment linked incentive scheme to boost job creation

Running a two-year sprint to hire and empower jobseekers, the Government of India recently approved the employment linked incentive scheme with a hefty budget of ₹99,446 crore. Open from 1 August 2025 to 31 July 2027, the plan offers a two-pronged boost to kick-start new employment and expand existing opportunities.

The first prong delivers a one-time incentive for job-seekers entering the formal workforce equal to one month of EPF wages, capped at ₹15,000, disbursed in two instalments. The second prong rewards employers who create additional positions, offering up to ₹3,000 per employee per month for at least six months again, subject to scheme eligibility.

Crafted after in-depth dialogues with ministries, trade unions, industry bodies, and policy experts, this scheme aims to bridge the gap between job creation and workforce readiness, ensuring that incentives are meaningful, targeted, and impactful.