New Delhi (Rajeev Sharma): Prime Minister Narendra Modi, in his Independence Day address from the Red Fort, unveiled the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) — a Rs 1 lakh crore initiative aimed at creating jobs and supporting young professionals entering the workforce for the first time.
The scheme, effective immediately, seeks to generate over 3.5 crore employment opportunities within the next two years. Of these, nearly 1.92 crore positions will benefit first-time job seekers. The Union Cabinet had approved the proposal last month, as part of the government’s broader “Viksit Bharat” vision for inclusive and sustainable growth.
Two-Part Employment Support Plan
The programme has two distinct components:
- Part A: Direct Incentive for First-Time Employees – Young professionals joining the private sector for the first time will receive up to Rs 15,000 in two instalments, credited via Direct Benefit Transfer (DBT). The first instalment will be released after six months of continuous employment, and the second after a year, upon completion of a financial literacy programme. Salaries up to Rs 1 lakh per month qualify under this provision.
- Part B: Incentives for Employers – To encourage hiring, employers will receive up to Rs 3,000 per month per new recruit, provided the employee earns up to ₹1 lakh and remains in service for at least six months. The scheme places a particular emphasis on the manufacturing sector, where incentives will extend to the third and fourth years.
Eligibility & Compliance
Only establishments registered with the Employees’ Provident Fund Organisation (EPFO) can participate. Smaller firms must add at least two new employees, while larger ones (with 50 or more staff) must hire at least five additional workers to be eligible. Incentive payments to employers will be routed to their PAN-linked accounts.
The Prime Minister emphasised that this initiative is designed not only to boost immediate job creation but also to instil financial discipline among the youth, as part of the incentive will be retained in savings instruments for future withdrawal.
