New Delhi, July 2: The Bharatiya Mazdoor Sangh (BMS) has welcomed the Union Cabinet’s approval of the Employment Linked Incentive (ELI) Scheme, describing it as a “historic step” towards job creation and workforce empowerment in the country.
In a press statement issued by BMS General Secretary Ravindra Himte, the organisation lauded the central government’s decision to roll out the ELI Scheme with a substantial outlay of Rs 99,446 crore. The initiative, which aims to generate over 3.5 crore jobs by incentivising establishments to appoint new workers, has been hailed by BMS as a timely and ambitious measure to tackle unemployment and support youth entering the job market.
“This initiative has the potential to significantly reduce unemployment, strengthen India’s workforce, and contribute to national development. BMS thanks the Government of India for taking a good initiative in creating employment opportunities,” the statement read.
BMS Welcomes ELI Scheme; Urges Assurance of Quality Employment, Worker Protections and Priority to Micro & Small Industries . @LabourMinistry @ilo @mansukhmandviya @minmsme @PMOIndia @RSSorg @FinMinIndia @PIB_India @PTI_News pic.twitter.com/B0RHN8AZx5
— Bharatiya Mazdoor Sangh (@BMSkendra) July 2, 2025
Calling it a “promising opportunity for transformative change,” BMS highlighted the scheme’s potential to formalise employment, expand the social security net, and provide a much-needed boost to manufacturing jobs.
However, the organisation stressed that the quantity of jobs should not overshadow the importance of quality employment. BMS urged the government to ensure that only establishments offering stable, secure, and well-compensated employment receive incentives under the scheme.
To safeguard worker interests and the scheme’s integrity, BMS made the following key recommendations:
- Limit incentives to establishments creating quality and stable employment;
- Mandate fair wages, health protection, PF, ESI, and all statutory benefits for workers;
- Prevent misuse through short-term or contractual hiring done only to claim incentives;
- Prioritise rural, micro, and small-scale manufacturing and ancillary industries;
- Ensure large corporations do not corner the scheme’s benefits at the expense of smaller players.
BMS also pledged full cooperation with the government and employers in ensuring effective implementation of the ELI Scheme, stating that its true success lies in genuinely uplifting workers and enhancing their standard of living.
On June 1, The Union Government approved the Employment Linked Incentive (ELI) Scheme. As part of the scheme, first-time employees will be eligible to receive one month’s wage—capped at Rs 15,000—while employers hiring additional workers will receive incentives for a period of two years. For establishments in the manufacturing sector, the incentive period will be extended by another two years.
With an allocation of ₹99,446 crore, the ELI Scheme specifically aims to facilitate the creation of over 3.5 crore jobs over a two-year period. Of these, around 1.92 crore are expected to be new entrants into the workforce. The scheme’s benefits will apply to jobs created between August 1, 2025, and July 31, 2027.
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