Which of the following statements relating to the recent steps taken by the Government ofIndia under the ‘Employment Linked Incentive (ELI) Scheme’ is/are correct?
1. ELI Scheme has an outlay of about ₹ 1 lakh crore.
2. Establishments registered with the EPFO are required to hire at least two additional employees(with fewer than 50 employees) or five additional employees (with 50 or more employees), on asustained basis for at least six months, to avail benefits under the ELI Scheme.
Select the answer using the codes given below:

Correct option is C

The Employment Linked Incentive (ELI) Scheme was announced as part of the Government of India’s employment and skilling package in Union Budget 2024–25, with the objective of incentivising formal job creation, especially in the manufacturing and services sectors.

​Statement 1 is correct: The ELI Scheme is part of a broader employment package with an outlay of about ₹1 lakh crore (often cited as ~₹1.07 lakh crore) to be implemented over multiple years. The package focuses on encouraging employers to generate new formal employment, particularly for first-time employees registered with EPFO.

Statement 2 is correct: Under the ELI framework:

• Establishments registered with EPFO must create net new jobs to be eligible.

• The minimum requirement is:

  • At least 2 additional employees for establishments with fewer than 50 employees, or

  • At least 5 additional employees for establishments with 50 or more employees.

• These additional employees must be retained on a sustained basis for at least six months to qualify for the incentive.

This condition ensures that incentives are linked to genuine and sustained employment generation, not short-term or contractual hiring.

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