India Introduces Employment Incentives and PF Withdrawals via UPI

The Indian government is set to launch the Employment Linked Incentive (ELI) Scheme to boost formal sector jobs through financial incentives. Additionally, members will soon access Provident Fund withdrawals via UPI. Both initiatives aim to enhance employment and ease financial transactions.

The Employment Linked Incentive (ELI) Scheme in India is poised for a significant rollout, with plans in the final approval stages. Labour Secretary Sumita Dawra, in an exclusive interview with ANI, underscored the government's commitment to turning this scheme into a catalyst for job creation in the formal sector. Dawra revealed that the central government has already introduced three ELI variants during the 2024 Union Budget, with benefits to be disbursed via Direct Benefit Transfer to Aadhaar-linked accounts.

Dawra emphasized the scheme's inclusion in the 'Prime Minister's Package for Employment and Skilling', highlighting extensive consultations with stakeholders. The scheme involves doubling the budgetary allocation from Rs 10,000 crore to Rs 20,000 crore. Together with a historic allocation of Rs 32,646 crore for labour welfare and employment in FY 2025-26, the ELI scheme is positioned to significantly impact employment rates.

In a parallel development, the Employees' Provident Fund Organisation (EPFO) is preparing to revolutionize PF withdrawals by incorporating the Unified Payments Interface (UPI). Approval from the National Payments Corporation of India paves the way for members to withdraw up to Rs 1 lakh seamlessly through UPI and ATM facilities by May or June. Dawra confirmed that individuals will soon enjoy real-time balance checks and transfers through the integrated UPI system, streamlining access to their provident funds.

(With inputs from agencies.)