ELI Scheme: Focus on Employment & EPF Compliance

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A high-level meeting was convened today to plan the implementation of the Employment Linked Incentive (ELI) Scheme in Himachal Pradesh. The meeting aimed at finalizing strategies for effective roll-out, raising stakeholder awareness—particularly among employers and employees in the organized sector—and ensuring comprehensive scheme coverage.

The meeting was chaired by Secretary, Labour & Employment, Priyanka Basu Ingty, who underlined the importance of the ELI Scheme in promoting social security and incentivizing long-term employment across the state. She called for collaborative efforts, including awareness camps and joint workshops with industrial associations, trade unions, and employer groups to disseminate scheme-related information.

It was observed that many contractors engaged by State PSUs and departments are not compliant with the Employees’ Provident Fund (EPF) Act, thereby excluding eligible workers from receiving benefits under the scheme. The Labour Secretary directed the Labour Department to coordinate with the Employees’ Provident Fund Organization (EPFO) for smooth implementation and to ensure maximum outreach.

Highlighting the scheme’s key components, she stated that Part ‘A’ of the ELI Scheme supports first-time EPF-registered employees with a one-month EPF wage subsidy (up to ₹15,000), disbursed in two installments—after 6 and 12 months of continuous service and post completion of a financial literacy programme. Employees earning up to ₹1 lakh annually are eligible.

Part ‘B’ of the scheme incentivizes employers to create additional employment across all sectors, with special focus on the manufacturing sector. Employers can receive subsidies up to ₹3,000 per month per new employee for two years, extended to four years in manufacturing.

Regional Provident Fund Commissioner Rakesh Kumar recommended conducting awareness drives with DDOs of all State PSUs and departments to ensure contractor compliance and employee inclusion under the scheme. He added that EPF Office Shimla is regularly updating stakeholders about the scheme through social media and direct communication channels like email.

Labour Commissioner Dr. Virender Sharma also participated in the meeting.

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