Cabinet clears Rs 1.07 lakh crore job-linked incentive scheme

The Union Cabinet has approved a Rs 1.07 lakh crore Employment-linked Incentive scheme to create over 3.5 crore jobs in two years. Employers will receive up to Rs 3,000 per month for hiring first-time employees, with extended benefits for the manufacturing sector

New Delhi: The government on Tuesday approved an Employment Linked Incentive scheme with an outlay of Rs 1.07 lakh crore to support job generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector.

The decision was taken at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi, Information & Broadcasting Minister Ashwini Vaishnaw said.

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The scheme aims to incentivise the creation of more than 3.5 crore jobs in the country over two years. Besides, the scheme will incentivise first-time employees.

An incentive of up to Rs 3,000 per month for two years towards each additional first-time employee. Employers will get incentives with respect to employees with salaries up to Rs 1 lakh. For the manufacturing sector, incentives to employers will be extended to the third and fourth years also.