The ELIS scheme starts on 1st August and runs until July 2027. Any employment generated above the baseline during this two-year period will be eligible for incentives.

“ So it commences on 1st August this year and the registration or the enrollment goes on till July of 2027. So whatever additional employment over and above the baseline that gets generated during this period of 2 years would be eligible for incentives under the scheme.”

— Vandana Gurnani, Secretary Of Labour Ministry

Part A of the scheme targets first-time jobseekers, aiming to reduce employers' hiring costs and help employees cover job search, transport, and housing expenses

“You know this entire scheme especially the part A is focused on first-time joinies uh because that is where the you know the hiring costs are higher and the scheme can have an impact on the marginal cost of hiring from the employees perspective but for employees it is something that will help them uh you know cover the uh costs of searching for jobs, transportation, housing etc .”

— Vandana Gurnani, Secretary Of Labour Ministry

The secretary stated that while all sectors receive incentives for 2 years post-employment generation, the manufacturing sector gets an extended incentive period of 4 years to provide an extra boost.

“ uh there is uh I would say an additional incentive a longer incentive for the manufacturing sector to give a special boost uh to that particular sector. uh so all sectors would be eligible for incentive for 2 years after the employment is generated However, manufacturing sector would have an additional 2 years. .”

— Vandana Gurnani, Secretary Of Labour Ministry

The Scheme A is exclusively for employees, offering incentives to first-time joiners via their Aadhaar-linked bank accounts.

“Yeah. Scheme A is only for the employees. It gives uh incentive to the uh firsttime joinies uh and it is through the Aadhaar linked bank account of the uh the people who would be employed. So yes, it is correct that it is only for the uh employees.”

— Vandana Gurnani, Secretary Of Labour Ministry

The secretary explained that companies with fewer than 50 employees must hire at least 2 more to qualify for incentives, while those with over 50 must hire at least 5. Incentives apply to all additional hires beyond these thresholds.

“any company which has less than 50 employees has to hire two additional employees. So uh over the baseline of employment that they currently have uh just two more people hired makes them eligible for the incentive. uh and if they hire 10 people, 15 people, 100 people, they get incentive for all of them. Similarly, for companies which have more than 50 employees, they have to hire five additional employees.”

— Vandana Gurnani, Secretary Of Labour Ministry

The scheme aims to ensure sustained employment, as EPFO data shows 45% attrition in the first 6 months. Incentives are given only after 6 months of job retention.

“..during this period because current data that we have from EPFO shows that almost 45% attrition takes place in the first 6 months uh so the the objective of the scheme is to make sure that there is a sustained employment and therefore the incentive comes in after 6 months of retention in that employment”

— Vandana Gurnani, Secretary of Labour Ministry

The secretary said companies only need to provide GSTN, a PAN-linked bank account, and employees' Aadhaar-linked accounts with face authentication. No detailed forms are required; once on the EPFO database, they're eligible.

“Yes. So as I said for companies just the just the details of GSTN and the panel linked bank account uh for the uh employee face authentication and an Aadhar linked bank account that's all they need to give uh there are no detailed forms that they have to fill out uh with this once they are on the EPFO database uh they would be eligible for the scheme.”

— Vandana Gurnani, Secretary Of Labour Ministry

The EPFO system has a strong IT backbone and algorithms to detect and prevent fraud.

“..so for that one is that the EPFO system has a very strong uh IT backbone uh to you know make sure that these frauds don't happen and then there are algorithms to detect if things do not uh go right.”

— Vandana Gurnani, Secretary of Labour Ministry