Modi Government to Provide ₹15,000 for First-Time Job Seekers – Know the Full Rules

The Central Government has given the green signal to the Employment Linked Incentive (ELI) scheme. Under this initiative, for the first time, young individuals starting their first job in India will receive financial assistance of up to ₹15,000 from the Modi government. Additionally, companies will receive an incentive of up to ₹3,000 for each new employee. This step has been taken to boost employment, especially in the manufacturing sector.

If you are starting your first job, the central government will provide up to ₹15,000 or one month’s salary (whichever is lower) in two installments. That means – get a job and receive a cash benefit. The employer will also receive ₹3,000 per month for hiring such employees. On Tuesday, the central government approved an Employment Linked Incentive package worth ₹1.07 lakh crore. Let’s understand who will benefit and how.

₹15,000 to Be Received in Two Installments

For the first time, the central government will provide one month’s salary or a maximum of ₹15,000. Employers hiring new employees will receive up to ₹3,000 per employee. The amount of ₹15,000 will be given in two installments – the first installment after completing six months of service, and the second after completing 12 months of service. Finance Minister Nirmala Sitharaman announced the Employment Linked Incentive in the 2024–25 Union Budget.

Will the Salary Be Given Immediately Upon Getting a Job?

No. The first installment will be given after completing six months of service, and the second installment will be given after 12 months of service, only after successfully completing a financial literacy program. Beneficiaries are required to deposit some amount in their savings account, which they can withdraw later. Around 1.92 crore youth will benefit from this scheme.

This scheme, which will be implemented from 1st August 2025, is estimated to cost ₹1.07 lakh crore. The main objective is to increase employment and encourage companies to generate more jobs. It is considered a significant step toward strengthening the manufacturing sector. This scheme is part of the ₹2 lakh crore Employment Package announced in the 2024–25 Union Budget, and it is expected to create 3.5 crore new jobs in two years.

Who Will Benefit and How?

Youth who register with the Employees’ Provident Fund Organisation (EPFO) for the first time will be eligible for benefits under the ELI scheme. The government will provide financial assistance up to one month’s salary (maximum ₹15,000) in two installments. For this, it is mandatory to work for at least 12 months. You must register with EPFO to avail the benefit. If you complete six months of employment, the first installment will be credited to your account, and the second installment after completing one year of employment. Additionally, participating in a financial literacy program is mandatory; without it, the incentive amount will not be given.

What Will Companies Get?

Along with employees, employers will also benefit under this scheme. Companies hiring new employees (those starting their first job) will receive financial incentives from the government. If a company is registered under EPFO and hires new employees, they will get up to ₹3,000 per employee per month. This incentive will be provided for a period of two years, but certain conditions apply.

What Are the Conditions of the Scheme?

• Companies with less than 50 employees must hire at least 2 new employees.

• Companies with 50 or more employees must hire at least 5 new employees.

• Employees must remain in the job for at least 6 months for the company to receive the incentive.

Will Those Who Got a Job Before August Get the Benefit?

The scheme will begin from 1st August 2025. Therefore, only those who get their first job between 1st August 2025 and 31st July 2027 will be eligible for the benefit. Individuals registering with EPFO for the first time after 1st August will be eligible. If you got a job before the scheme started, but you register with EPFO after 1st August, you may still be eligible for the benefit.

How Much Incentive Will Companies Receive?

Companies will receive

• ₹1,000 per month for employees with a salary up to ₹10,000

• ₹2,000 per month for employees with a salary between ₹10,000 and ₹20,000

• ₹3,000 per month for employees with a salary between ₹20,000 and ₹1,00,000

This incentive will be available for two years, but employees must work for at least 6 months to make the company eligible.