Prime Minister Narendra Modi on Thursday announced the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), a scheme aimed at generating employment in the country. The announcement was made during his address from the Red Fort on the 78th Independence Day.
“My country’s youth, today is 15th August, and on this very day, we are launching a scheme worth ₹1 lakh crore for the youth of our country. Under this scheme, young men and women getting their first job in the private sector will receive ₹15,000 from the government. Companies that create more employment opportunities will also be given incentive amounts. The Pradhan Mantri Viksit Bharat Rojgar Yojana will create nearly 3.5 crore new employment opportunities for the youth,” Modi said.
The scheme, cleared earlier by the Union Cabinet, will operate with an outlay of ₹99,446 crore and is applicable to jobs created between 1 August 2025 and 31 July 2027. Of the targeted 3.5 crore jobs, about 1.92 crore are expected to be first-time entrants into the workforce.
Scheme structure
The PM-VBRY has two components — incentives for first-time employees and support for employers.
Part A will provide first-time EPFO-registered employees with a one-month EPF wage up to ₹15,000 in two instalments, for those earning up to ₹1 lakh per month. The first instalment will be paid after six months of service, and the second after 12 months along with completion of a financial literacy programme. A portion of the benefit will be held in a savings or deposit account for a fixed period.
Part B will provide employers in all sectors, with a focus on manufacturing, an incentive for each additional employee earning up to ₹1 lakh per month, employed for at least six months. Incentives range from ₹1,000 to ₹3,000 per employee per month, depending on wage level, for two years. For manufacturing, incentives will extend to the third and fourth years.
Employers with fewer than 50 workers will need to hire at least two additional employees, while those with 50 or more will need to hire at least five, to qualify.
Payments to employees under Part A will be made through the Aadhaar-based payment system, while payments to employers will be made into PAN-linked accounts.
