Prime Minister Narendra Modi on Friday, 15 August, unveiled the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY), a Rs 1 lakh crore employment-linked incentive scheme. The announcement came during his Independence Day address from the Red Fort as India marked its 79th year of freedom.
The scheme, effective immediately, is expected to create over 3.5 crore jobs within two years. Of these, nearly 1.92 crore opportunities will go to first-time entrants into the workforce. The programme, cleared by the Cabinet last month, has been structured in two parts to support both employees and employers.
Part A of the scheme focuses on individuals entering formal employment for the first time through registration with the Employees’ Provident Fund Organisation (EPFO). Workers earning up to Rs 1 lakh annually will be eligible for an incentive equal to one month’s EPF wage, capped at Rs 15,000. The benefit will be released in two instalments—after six months of service and again after a year, subject to completion of a financial literacy module. A portion of the payout will be directed into a savings instrument to encourage financial discipline. All transfers will be made through the Aadhaar Bridge Payment System.
Part B is aimed at encouraging businesses to expand hiring, particularly in manufacturing. Establishments registered with EPFO will receive up to Rs 3,000 per employee per month for two years, provided workers remain employed for at least six months. For manufacturing units, the incentive will continue for up to four years. Smaller firms with fewer than 50 workers must add at least two employees, while larger firms must hire five or more to qualify. Payments will be made directly to employers’ PAN-linked accounts.
The Labour Ministry said PMVBRY is central to the government’s Viksit Bharat vision and demonstrates its commitment to inclusive, sustainable job creation.
