Labour ministry to seek Cabinet nod for ELI schemes soon: Minister Mandaviya

Moving ahead with the Budget proposals for employment-linked incentives (ELIs), the ministry of labour and employment is set to seek approval from the Cabinet on the three schemes soon. 

“Systems for the new schemes have been brought about. A note for approval from the Union Cabinet on these three ELI schemes will be sent shortly,” said Labour and Employment Minister Mansukh Mandaviya, adding that he is hopeful of approval soon.

The Union Budget 2024-25 had announced three schemes for ELI as part of the Prime Minister’s Package, which are based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers.   

These include a scheme that will target first-time employees in the formal sector registered with EPFO and will offer a one month wage up to Rs 15,000 in three instalments, another scheme that will incentivise additional employment in the manufacturing sector, especially for first time job seekers, through a contribution to the EPFO and a third employer-focussed scheme that will cover additional employment in all sectors. 

Mandaviya said that the EPFO platform for these three schemes is also now ready and said he is hopeful of good participation by companies in these schemes.

Meanwhile, in order to bring social security and formal sector benefits to gig and platform workers, the minister is also meeting online aggregators on Wednesday.

The labour ministry has also invited platform aggregators to register their workers on the e- Shram portal.
The move is the first step in providing these workers with social security benefits as well as having an accurate registry of such workers.

“A Platform Workers module has been developed (in these 100 days) on eShram to facilitate verification of Platform Workers registered on eShram through aggregators. Testing of this module with selected aggregators has been successfully completed,” said an official statement.

According to NITI Aayog estimates, there are over 10 million gig workers in the country at present, Mandaviya said, adding that it has become an emerging sector for job creation.

“The meeting with platform aggregators will focus on asking them to register their workers on the e-Shram portal as well as to brainstorm on how to provide gig workers with social security," Mandaviya said.

Addressing reporters on the work done by the Modi government in the first 100 days since taking charge, the minister also said that discussions are underway on increasing the salary cap for both the Employees' Provident Fund Organisation as well as the Employees' State Insurance Corporation.

At present, the wage ceiling for mandatory contribution to the EPFO is Rs 15,000 per month and for the ESIC, it is Rs 21,000 per month.