New PF scheme to boost jobs and support employers in Sikkim; EPFO launches ELI scheme

To create more jobs and support employers, the Employees’ Provident Fund Organisation (EPFO) has announced the rollout of the Employee Linked Incentive (ELI) Scheme. The scheme will run for two years, from August 1, 2025, to July 31, 2027. The announcement was made in Gangtok by Namthak Tenzing, Regional PF Commissioner for Sikkim, along with Hemant Kumar Das, Enforcement Officer, EPFO Sikkim.

The ELI Scheme, recently approved by the Union Cabinet, is aimed at improving employment opportunities for new job seekers and providing financial support to employers. The scheme has two main components; Part A and Part B.

Under Part A, the government will help new employees by covering their first month’s PF wages. This amount will be provided in two installments—once after six months and again after twelve months. The wage support is capped at ₹15,000 and is directly aimed at encouraging young job seekers to enter the formal job market.

Commissioner Tenzing said that the scheme will especially benefit fresh graduates and first-time job seekers. “The scheme gives a boost to youth employment. It empowers young people by covering their first salary contribution and bringing them into the formal workforce,” he said.

Part B focuses on supporting employers who hire new employees. Employers hiring at least five new workers (if they already have more than 50 staff), or two new workers (if they have fewer than 50 staff), will receive financial support. The government will contribute to their monthly PF payments—up to ₹3,000 per new employee—for two years.

For manufacturing units, this support will extend up to four years, reflecting the government’s special focus on the industrial sector.

The scheme provides different PF contribution amounts based on the salary of new recruits:

• ₹1,000 per month for employees earning up to ₹10,000

• ₹2,000 per month for those earning ₹10,000 to ₹20,000

• ₹3,000 per month for employees earning above ₹20,000, up to ₹1 lakh

The government has allocated ₹96,466 crore for this ambitious scheme. It is expected to benefit over 3.5 crore employees, including 1.92 crore new workers across India.

“This is not just a welfare scheme; it’s a step toward increasing formal employment and encouraging savings,” Tenzing noted. He further explained that all new employees will receive a Universal Account Number (UAN), which is linked with Aadhaar and bank accounts, ensuring seamless and transparent fund transfers via Direct Benefit Transfer (DBT).

Officials said that the scheme is part of the government’s larger plan to bring more workers into the formal employment sector. With Aadhaar-linked UANs and bank accounts, new employees will begin saving and receiving social security benefits from the start of their careers.

“This will also encourage skill development. Since the benefit is spread over time, employees are motivated to stay longer and gain experience,” Hemant Kumar Das added.

Commissioner Tenzing made a direct appeal to employers in Sikkim to register their establishments under the ELI scheme. “This is a golden opportunity to grow your workforce with government support. I urge all employers to make use of this scheme,” he said.

Though the scheme covers all sectors, there is special emphasis on manufacturing. Industries in this sector will enjoy government contributions for a longer duration—up to four years—making it more attractive to hire and retain skilled labor.