Prime Minister Narendra Modi launched the Viksit Bharat Rozgar Yojana on Independence Day, with an outlay of ₹1 lakh crore. The scheme aims to create 3.5 crore jobs over two years and provide ₹15,000 to first-time employees in the private sector.

In a major push to formal employment creation, Prime Minister Narendra Modi on Friday announced the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) during his 79th Independence Day address from the Red Fort. The scheme, which has a budget of ₹1 lakh crore, intends to generate 3.5 crore jobs for the youth of the nation over the next two years.

"My country's youth, today is 15th August, and on this very day, we are launching a scheme worth Rs 1 lakh crore for the youth of our country. From today, the Pradhan Mantri Viksit Bharat Rojgar Yojana is being implemented," Prime Minister Modi said in his speech.

What is the Viksit Bharat Rozgar Yojana?

The programme is framed as an Employment Linked Incentive (ELI) scheme with the aim to create jobs in the formal sector between August 2025 and July 2027. It also aims to encourage 1.92 crore first-time workers, providing them with financial incentives when they join the formal workforce.

Youth who enter the private sector for the first time will be given ₹15,000 as an incentive by the government, and firms which add new workforce will also get rewarded with money.

Scheme Structure: Two-Part Design

The PM-VBRY is structured into two important parts:

Part A: Incentives to First-Time Employees

According to the PIB, this part is targeted towards youth joining formal employment for the first time and enrolling with the Employees' Provident Fund Organisation (EPFO).

Eligibility:

-First-time EPFO enrollment

-Monthly salary of up to ₹1 lakh

Benefits:

-Financial incentive of up to ₹15,000, received in two instalments:

-First instalment after 6 months of uninterrupted service

-Second payment after 12 months, after completing a financial literacy program

-To encourage savings, a portion of the reward will be placed in a fixed saving instrument or deposit account, which can be accessed later.

Part B: Employer Incentives

This section is about encouraging employers to generate new jobs, with a particular focus on the manufacturing industry.

Eligibility:

-Must be EPFO-registered

Need to hire:

-Minimum 2 additional workers for units with less than 50 employees

-Minimum 5 more employees for units with 50 or more employees

-New recruits should be retained for a minimum of six months

Incentive Structure (Per Additional Employee/Month):

For EPF wage up to ₹10,000

-Employer will get an incentive of up to ₹1,000

For EPF wage between ₹10,001 and ₹20,000

-Employer will get an incentive of ₹2,000

For EPF wage between ₹20,001 and ₹1,00,000

-Employer will get an incentive of ₹3,000