Modi government's new scheme to generate 3.5cr jobs launching soon
What's the story
The Indian government is all set to launch a new employment-linked incentive scheme, the PM Viksit Bharat Rozgar Yojana (PMVBRY), on August 1, 2025. The announcement was recently made by the Labour Ministry in an official statement. The scheme aims to enhance employment opportunities in the country by directly promoting job creation across various sectors.
Scheme approval
1.92 crore beneficiaries to be first-time job seekers
The PM Viksit Bharat Rozgar Yojana was approved by the Union Cabinet, headed by Prime Minister Narendra Modi. The scheme has an ambitious target of generating over 3.5 crore jobs in two years with a financial outlay of ₹99,446 crore. Of this, some 1.92 crore beneficiaries are expected to be first-time job seekers.
Employment strategy
PMVBY part of broader Viksit Bharat initiative
The PMVBRY is part of the government's broader Viksit Bharat initiative, aimed at inclusive and sustainable employment generation. The scheme has two parts: Part A for first-time employees and Part B for employers. Under Part A, new employees registered with the Employees' Provident Fund Organisation (EPFO) will get one month's EPF wage up to ₹15,000 in two installments if their monthly salary doesn't exceed ₹1 lakh.
Employer benefits
What will be the support for employers under Part B?
Under Part B of the scheme, employers will be incentivized for every additional employee they hire with a monthly salary up to ₹1 lakh. The government will provide up to ₹3,000 per month per employee for two years. This support will also be available in the third and fourth years for the manufacturing sector.
Scheme details
Eligibility criteria for establishments hiring additional employees
To be eligible for PMVBRY, EPFO-registered establishments must hire at least two or five additional employees (depending on their current employee count) and retain them for a minimum of six months. Payments under Part A will be directly credited to employees through the Direct Benefit Transfer mode using the Aadhaar Bridge Payment System. Employers will receive incentives in their PAN-linked accounts.