New Job Incentive Scheme Could Boost Hiring, Benefit Staffing Firms: SEBI RIA

The Union Cabinet has approved a ₹99,446 crore Employment-Based Incentive (ELI) scheme aimed at accelerating formal job creation and upskilling across India, with incentives designed to encourage companies to expand hiring.

TrueNorth Capital, a SEBI-registered investment advisor, said the scheme is likely to provide a structural demand tailwind for formal staffing services, especially among organized recruiters and manpower solutions providers.

The advisor added that the successful implementation of the scheme will provide significant advantages to staffing and HR services firms like TeamLease Services, Quess Corp, and Info Edge.

The official Cabinet announcement declared that the scheme would generate 3.5 crore new jobs from August 1, 2025, through July 31, 2027.

Companies hiring new workers will receive ₹3,000 per employee for two years. For manufacturing firms, the benefit extends to four years.

To qualify, companies with fewer than 50 employees must hire at least two new workers; those with 50 or more must add a minimum of five. 

All eligible hires must be registered with the Employees’ Provident Fund Organisation (EPFO).

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