New Delhi: Prime Minister Narendra Modi on Friday, August 15, announced the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY), a Rs 1 lakh crore employment-linked incentive scheme aimed at supporting first-time job seekers and employers.
The announcement was made during his address to the nation from the Red Fort on the occasion of India’s 79th Independence Day. The scheme, which comes into effect immediately, is expected to benefit more than 3.5 crore people, the Prime Minister said.
Two-Part Scheme Structure
According to the Ministry of Labour and Employment, which announced Cabinet approval for the scheme last month, PMVBRY is designed to create over 3.5 crore jobs in two years, with 1.92 crore beneficiaries being first-time entrants into the workforce.
Part A targets first-time employees registered with the Employees’ Provident Fund Organisation (EPFO).
Eligible employees earning up to Rs 1 lakh will receive an incentive equal to one month’s EPF wage, capped at Rs 15,000, in two instalments, after six months of service and after 12 months upon completing a financial literacy programme. A portion of the incentive will be placed in a savings instrument to promote financial discipline, with payments made via Direct Benefit Transfer using the Aadhaar Bridge Payment System.
Employer Incentives to Boost Hiring
Part B focuses on employers, particularly in the manufacturing sector. Establishments registered with EPFO will receive incentives of up to Rs 3,000 per month for two years for each additional employee with sustained employment for at least six months. For manufacturing, the benefit will extend to the third and fourth years.
Employers with fewer than 50 workers will need to hire at least two additional employees, while those with 50 or more workers will be required to hire at least five to qualify. All payments to employers will be credited directly to their PAN-linked accounts.
The Ministry said the scheme aligns with the government’s Viksit Bharat initiative and reflects its commitment to creating “inclusive and sustainable employment opportunities” across sectors.
