govt pays you to hire

Hey!

Bhanu here with news and updates for manufacturing, security services, and pharma companies.

The government recently announced the largest job creation initiative in India's history.

On July 1, 2025, the Union Cabinet approved the ₹99,446 crore Employment Linked Incentive (ELI) Scheme, India’s largest job creation initiative yet.

It offers up to ₹3,000/month per new hire for 2–4 years.

But here’s the thing: only EPFO-registered employees with proper documentation are eligible.

Companies without formal workforce management systems will miss this historic opportunity entirely.

The government is literally paying companies to hire formally and the benefits are substantial:

Industry-Specific Challenges

• Manufacturing: Need to hire 50+ new non-EPFO workers OR 25% of baseline workforce (whichever is lower)

• Contract Security: Site rotations and temporary assignments make sustained employment difficult

• Pharma: International audits demand formal employment documentation for all staff

The Cost of Missing Out

Manufacturing: ₹1.44 lakh per worker lost over 4 years Security Services: ₹72,000 per worker lost over 2 years Pharma: Plus competitive disadvantage in international markets

Companies accessing ELI benefits will have insurmountable cost advantages in bidding and talent acquisition.

1. What are the minimum hiring requirements for manufacturing companies to access ELI benefits? 

Hire at least 50 new non-EPFO workers or 25% of baseline workforce, whichever is lower. Manufacturing gets 4-year subsidies vs 2 years for other sectors.

2. How can contract security services restructure operations for ELI eligibility? 

Convert contract positions to permanent EPFO-covered roles with 6+ month employment terms. Coordinate with clients for sustained assignments to access 2-year subsidies.

3. What documentation do pharma companies need for ELI compliance? 

All staff need formal employment contracts with EPFO registration, UAN activation, and Aadhaar linking. Convert temporary contractors to permanent positions for benefit eligibility.

4. What's the deadline for EPFO registration to access ELI benefits? 

No fixed deadline, but UAN activation and Aadhaar linking must be completed before benefit claims. Jobs created August 1, 2025 - July 31, 2027 qualify.

5. How does the 6-month sustained employment requirement work? 

Employees must stay continuously employed for 6+ months to trigger benefits. First installment comes after 6 months, second after 12 months for Scheme A.

6. Can we combine multiple ELI schemes for maximum benefits? 

Yes. Manufacturing companies can access Scheme A (₹15,000 per first-timer), Scheme B (4-year manufacturing subsidies), and Scheme C (general employer subsidies) simultaneously.

7. What happens if employees leave before completing the 6-month requirement? 

Employers get refunds if employees leave within 12 months. Maintain workforce above baseline to continue receiving ongoing subsidies.

8. How do manufacturing companies calculate their baseline workforce for ELI thresholds? 

Baseline = current EPFO-registered workforce. Add either 50 non-EPFO workers or 25% of baseline (whichever is lower) for 4-year benefits.

9. Are there specific requirements for the financial literacy program in Scheme A? 

Yes, mandatory online program completion required before second ₹7,500 installment after 12 months of service.

The ELI Scheme offers ₹99,446 crore in government subsidies - but only to companies with formal workforce management systems.

This is the largest employment incentive in India's history. Smart companies will restructure their workforce management now to capture maximum benefits. 

Those that don't will watch competitors access massive cost advantages while the ELI window remains open.

The scheme covers jobs created until July 31, 2027. The optimization window is now.

Stay Well,
Bhanu