SYLLABUS
GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Context:
The Prime Minister of India announced the Pradhan Mantri Viksit Bharat Rozgar Yojana in his Independence Day address.
More on the News
- The scheme, with an allocation of nearly ₹1 lakh crore, is designed to generate over 3.5 crore jobs across the country during the two-year period from August 1, 2025, to July 31, 2027.
- On July 1, 2025, the Union Cabinet gave its approval to the Employment Linked Incentive (ELI) Scheme, paving the way for its rollout.
- To ensure smooth implementation and transparency, the Ministry of Labour and Employment launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) portal on August 18, 2025.
Pradhan Mantri Viksit Bharat Rozgar Yojana
- It is a nationwide employment initiative aimed at transforming job opportunities for India’s youth and to supporting employment generation, enhancing employability and social security across all sectors
- The scheme aims to provide direct incentives to first-time employees and encourage private employers to generate sustained employment.
- The scheme will be implemented by the Ministry of Labour & Employment through Employees Provident Fund Organisation (EPFO).
- The scheme will provide an incentive of up to ₹15,000 in two instalments to newly employed youth and up to ₹3000 per month per new employee to employers for the creation of new job opportunities.
Key Features of the Scheme
Part A – Support to First-Time Employees:
- Eligibility & Incentive Structure: First-time employees registered with EPFO, earning up to ₹1 lakh per month, will receive an incentive equal to one month’s Employee Provident Fund (EPF) wage (up to ₹15,000) in two instalments — the first after 6 months of service and the second after 12 months of service subject to completion of a financial literacy programme.
- Savings Component: To promote financial discipline, a portion of the incentive will be deposited in a savings instrument or fixed deposit account, which will be accessible to the employee only after a specified period.
- Part A will benefit around 1.92 crore first time employees.
Part B – Incentives for Employers:
- Employment Generation Incentives: Employers hiring new employees with salaries up to ₹1 lakh will receive incentives of up to ₹3,000 per month per employee, provided the job is sustained for at least six months. This benefit will apply for two years across all sectors.
- Special Focus on Manufacturing: To boost long-term job creation in manufacturing, the incentive period will be extended to the 3rd and 4th years, making the sector a priority under the scheme.
- This part is expected to incentivise employers for the creation of additional employment of nearly 2.60 crore persons.
Incentive Payment Mechanism: All payments to the First Time Employees under Part A of the Scheme will be made through DBT (Direct Benefit Transfer) mode using Aadhar Bridge Payment System (ABPS) and payments to the employers under Part B will be made directly into their PAN-linked Accounts.
Benefits of the Scheme
Employee:
- Formalisation of job through expansion of social security coverage.
- On job training making First-timers employable.
- Improved employability through sustained employment
- Financial literacy skills
Employers:
- Offsetting the cost of additional job creation.
- Enhancing workforce stability and productivity.
- Incentivising social security coverage
The benefits of the scheme would be applicable to jobs created between 1st August 2025 and 31st July, 2027.
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