The 43-year-old replaces another female MP in the Cabinet, Esther McVey, who lost her seat at the polls.
Prime Minister David Cameron today promoted one of Britain's most prominent Indian-origin MPs Priti Patel by making her the new Employment Minister.
Ms Patel was re-elected from Witham in Essex with a big majority in the May 7 general election.
The 43-year-old replaces another female MP in the Cabinet, Esther McVey, who lost her seat at the polls.
"A real privilege to be appointed as Minister of State for Employment at the Department for Work and Pensions," Ms Patel said in a Twitter message.
While the London-born mother of one will not be in charge of the Department for Work and Pensions, she has been given a Cabinet rank as a promotion from her previous role as Exchequer Secretary to the Treasury.
It remains to be seen if she will also carry on in her honorary role as the British Prime Minister's Indian Diaspora Champion.
Her appointment reflects PM Cameron's plans to shake up the party's old fashioned all-male image and have a significant number of women around the Cabinet table.
Amber Rudd has been appointed Energy and Climate Change Secretary and Baroness Stowell is promoted to the Cabinet as the Leader of the House of Lords.
PM Cameron had already confirmed Nicky Morgan in her previous post as Secretary of State for Education and Minister for Women and Equalities.
Other key announcements today included Pakistani-origin Sajid Javid moving from Culture Secretary to Secretary of State for Business and London Mayor Boris Johnson being made a minister without a portfolio.
Mr Johnson, widely seen as a Conservative party leadership contender, will attend Political Cabinet until he completes his term as mayor in 2016 when he is expected to be given an official portfolio.
PM Cameron said: "Boris Johnson will be attending my Political Cabinet. As promised, he will devote his attention to his final year as Mayor of London."
Iain Duncan Smith, often referred to by his initials IDS, will be Ms Patel's boss as the Work and Pensions Secretary and veteran Tory MP John Whittingdale is to become Secretary of State for Culture, Media and Sport.
Some of the senior ministerial posts were confirmed soon after the election results were finalised on Friday.
Chancellor George Osborne, Home Secretary Theresa May, Foreign Secretary Philip Hammond and Defence Secretary Michael Fallon were re-confirmed in their respective posts.
More announcements are expected to continue to filter in after Cameron spent the weekend on the shape of his new Cabinet.
Osborne also earned an honorific title of first secretary of state, which formally indicates his seniority over other ministers.
PM Cameron moved Michael Gove from his post as Conservative party chief whip to Justice Secretary as he continued to fill in the Cabinet posts over the weekend.
Former immigration minister Mark Harper takes over as party chief whip and parliamentary secretary to the Treasury.
Chris Grayling, previously justice secretary, takes over as Lord President of the Council and Leader of the House of Commons.
The Conservatives won a 12-seat majority in the House of Commons in Thursday's election, taking 331 of the 650 seats, which freed them of the need for any coalition considerations of the past opening up a number of Liberal Democrat Cabinet posts to fill.
PM Cameron attended the influential 1922 Committee on today, which is the Conservative Party MPs private committee where all MPs get to voice their opinions to the party leader.
The newly re-elected Prime Minister is expected to address the committee on plans to renew the UK's relationship with Europe and show "respect" for all parts of the Union.