Delhi: On India’s 79th Independence Day, Prime Minister Narendra Modi announced the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY), a landmark 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 in New Delhi on Friday, August 15.
The scheme, which comes into effect immediately, is expected to generate over 3.5 crore employment opportunities in the next two years, with nearly 1.92 crore beneficiaries being first-time entrants into the workforce, the Prime Minister said.
Part A: Incentives for First-Time Employees
Under Part A of the PMVBRY, first-time employees registered with the Employees’ Provident Fund Organisation (EPFO) will be eligible for financial incentives. Individuals earning up to Rs 1 lakh annually will receive an incentive equal to one month’s EPF wage, capped at Rs 15,000, provided in two instalments: after six months of service and upon completion of 12 months, combined with a financial literacy programme.
A portion of the incentive will be deposited into a savings instrument to encourage long-term financial discipline. Payments will be processed through Direct Benefit Transfer (DBT) using the Aadhaar Bridge Payment System, ensuring transparency and efficiency.
Part B: Incentives for Employers
The second part of the scheme focuses on employers, especially in the manufacturing sector. Eligible establishments registered with EPFO will receive up to Rs 3,000 per month for two years for every additional employee retained for at least six months. For the manufacturing sector, the benefit will extend into the third and fourth years.
To qualify, employers with fewer than 50 employees must hire at least two additional staff members, while larger employers with 50 or more workers must hire a minimum of five. All payments to employers will be credited directly to PAN-linked accounts, ensuring timely and hassle-free transfers.
A Step Towards Inclusive Employment
The Ministry of Labour and Employment highlighted that PMVBRY aligns with the government’s Viksit Bharat initiative and reflects a commitment to creating inclusive, sustainable, and high-quality employment opportunities across sectors. The scheme is designed to support both employees and employers, stimulate workforce participation, and promote financial literacy and stability among first-time workers.
