Context: 

On August 15, 2025, Prime Minister Narendra Modi announced the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) during his Independence Day address. The scheme is a strategic move to promote formal employment and aims to create 3.5 crore new jobs across India within the next two years.

Aim and Objectives of the Scheme:

• Generate over 3.5 crore jobs in two years
• Support youth employment by incentivizing first-time formal jobs
• Encourage employers to create sustainable employment
• Promote formalization of the workforce through EPFO registration and social security coverage

Key Features:

Part A: Support for First-Time Employees

• Eligibility: First-time employees registered with EPFO and earning up to ₹1 lakh/month
• Incentive: One-month EPF wage (up to ₹15,000), disbursed in two instalments
• 1st after 6 months of continuous service
• 2nd after 12 months and completion of a financial literacy programme
• Savings Component: A portion of the incentive will be deposited in a fixed savings account to promote saving habits

Part B: Incentives for Employers

• Target: Employers hiring new employees earning up to ₹1 lakh/month
• Incentive: Up to ₹3,000 per employee per month for 2 years
• Special focus on the manufacturing sector, where incentives may be extended to the 3rd and 4th years

Incentive Payment Mechanism

• For Employees (Part A): Payments via Direct Benefit Transfer (DBT) using Aadhaar Bridge Payment System (ABPS)
• For Employers (Part B): Incentives will be deposited directly into PAN-linked bank accounts

Benefits of the scheme:

For Youth

• Direct financial assistance for entering the formal job market
• Access to EPF and social security benefits
• Encouragement of financial literacy and savings

For Employers

• Lower onboarding costs
• Long-term incentives for retaining employees
• Extra support for manufacturing-sector growth

Conclusion

The Pradhan Mantri Viksit Bharat Rozgar Yojana is a game-changing initiative aimed at transforming India’s employment landscape. By incentivizing both employees and employers, it seeks to create a strong, skilled, and financially secure workforce, contributing to the vision of a Viksit Bharat by 2047.