Modi launches ₹1T employment scheme, ₹15,000 incentive for first-time jobholders
What's the story
On India's 79th Independence Day, Prime Minister Narendra Modi launched the new employment scheme called the Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY). The ₹1 lakh crore initiative aims to create job opportunities for nearly 3.5 crore youth in India. Under this program, each first-time jobholder will receive a financial incentive of ₹15,000 to make the job market more accessible and rewarding for fresh entrants. The scheme was approved by the Cabinet on July 1.
Target beneficiaries
PM-VBRY comprises 2 key components
PM-VBRY comprises two key components: Part A focuses on providing incentives to first-time employees, while Part B offers support to employers. Part A provides the ₹15,000 incentive to eligible employees, whereas Part B incentivizes employers to create additional employment opportunities. Employers can receive up to ₹3,000 per month for each new employee hired, contingent on meeting specific criteria such as sustained employment and timely contributions to the Employees' Provident Fund (EPF).
Eligibility
Eligibility and implementation details
To qualify for the ₹15,000 incentive, first-time employees must be registered with the EPF and earn a monthly salary of up to ₹1 lakh. The incentive is disbursed in two installments: the first after six months of continuous employment and the second after 12 months. Employers must hire a minimum number of additional employees—two for establishments with fewer than 50 employees and five for those with 50 or more—to avail themselves of the benefits under Part B.
Growth
Focus on youth empowerment and regional development
PM-VBRY emphasizes empowering the youth by facilitating their entry into the formal workforce. The scheme is particularly beneficial for regions with high unemployment rates, aiming to stimulate job creation and economic development in underserved areas. By incentivizing both employees and employers, the government seeks to foster a sustainable employment ecosystem that contributes to the nation's overall growth and prosperity.
Message
Never let your ideas die: Modi
Modi also urged Indian youth to innovate and invent. "Never let your ideas die. I stand with you and am ready to work as your partner. Come forward, gather courage—I am with you. The government's rules need to change—tell me how," he said. "This nation does not want to stop. 2047 is not far away, every moment is precious, and we do not want to waste a single one."