Prime Minister Narendra Modi has announced the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY). The scheme aims to boost employment opportunities for India’s youth while also supporting companies that create jobs. Under this initiative, first-time employees will receive financial assistance of ₹15,000, and companies offering jobs will also be incentivized.

The government expects this ambitious scheme to generate 3.5 crore jobs across the country within the next two years. The announcement was made on 15 August 2025 during the Prime Minister’s Independence Day address.

Objective of Pradhan Mantri Viksit Bharat Rozgar Yojana

The key goal of the scheme is to encourage job creation and strengthen formal employment in India. According to PM Modi, the government has allocated a budget of nearly ₹99,446 crore for the program. The scheme is designed to create opportunities for both employers and employees, ensuring that the country’s workforce expands with proper support.

The Prime Minister stated, “This is a ₹1 lakh crore initiative for the youth of India. The scheme will provide first-time jobseekers with financial support and help companies expand their workforce.”

Timeline and Implementation

The scheme covers jobs created between 1 August 2025 and 31 July 2027. During this period, first-time employees and employers expanding their workforce will be eligible for benefits.

The Cabinet had already approved the plan on 1 July 2025, under PM Modi’s leadership, with the purpose of accelerating job creation across sectors.

Structure of the Scheme

The Pradhan Mantri Viksit Bharat Rozgar Yojana is divided into two key parts: Part A and Part B.

Part A: Benefits for Employees

This section of the scheme is focused on employees who are starting their first formal job. Only individuals registered with the Employees’ Provident Fund Organisation (EPFO) will qualify.

Under this part:

• Eligible employees will receive ₹15,000 in two installments.

• The first installment will be paid after six months of continuous employment.

• The second installment will be paid after 12 months of employment, provided the employee completes a Financial Literacy Program.

• Only employees with a monthly salary of up to ₹1 lakh will be eligible. Employees earning above this threshold will not qualify for benefits.

This part ensures that young jobseekers entering the workforce receive both financial help and essential training to manage their earnings effectively.

Part B: Benefits for Employers

Part B of the scheme supports companies and organizations that provide new employment opportunities. Employers who hire additional workers will receive financial incentives.

• Companies will receive ₹3,000 per month per additional employee for two years.

• The benefit applies to employees earning up to ₹1 lakh per month who remain in service for at least six continuous months.

• For the manufacturing sector, this incentive extends into the third and fourth years as well.

• Employers with fewer than 50 employees must hire at least two additional workers to qualify.

• Employers with 50 or more employees must hire five or more additional workers to qualify.

This design ensures that companies expand their workforce responsibly while also creating sustainable job opportunities for young workers.

Direct Benefit Transfer System

The scheme relies on Direct Benefit Transfer (DBT) to ensure transparency.

• Payments for employees under Part A will be made through DBT using the Aadhaar-based payment system (ABPS).

• Employers under Part B will receive incentives directly in their PAN-linked accounts.

This approach prevents delays, ensures accountability, and guarantees that the benefits reach the intended recipients without intermediaries.

Budget and Employment Target

The PMVBRY has been allocated a budget of ₹99,446 crore. Out of the 3.5 crore jobs expected to be created:

• 1.92 crore beneficiaries will be first-time employees under Part A.

• The rest will benefit through the incentives provided to companies under Part B.

The government projects that this scheme will not only reduce unemployment but also promote formalization of the workforce by increasing EPFO registrations.

Application Process

The application process for the scheme has been simplified to encourage wider participation. Both employers and employees must follow these steps:

1. Obtain an EPFO code through the Shram Suvidha Portal.

2. Employers must register on the EPFO employer login portal.

3. New employees earning up to ₹1 lakh per month must be hired under the scheme.

4. Employers must file monthly ECR returns along with PF contributions.

5. Additional employees must remain employed for at least six continuous months.

This ensures that only genuine and sustainable employment is supported by government funds.

Eligibility Criteria

Employees and employers must meet specific eligibility conditions:

• Employees must join an EPFO-registered or exempted establishment.

• Salary should not exceed ₹1 lakh per month.

• Employees must have an Aadhaar-linked Universal Account Number (UAN) verified through biometric authentication.

• All payments to employees will be made through DBT using ABPS.

• Employers must comply with EPFO guidelines and submit accurate employee records.

These conditions safeguard the scheme from misuse and ensure that benefits reach genuine workers and companies.

Importance of the Scheme for India’s Workforce

The Pradhan Mantri Viksit Bharat Rozgar Yojana is not just a financial scheme. It is a roadmap for shaping the employment landscape of India.

By supporting first-time jobseekers, the scheme directly encourages youth to join the formal workforce. By offering incentives to employers, it motivates industries to expand operations and hire more workers.

The focus on manufacturing and extended benefits for that sector highlights the government’s aim to boost industrial growth and Make in India initiatives.

Expected Impact on the Economy

The PMVBRY is expected to have a multi-dimensional impact:

• Employment Growth: 3.5 crore new jobs will help reduce unemployment rates significantly.

• Formalization of Workforce: More registrations with EPFO will strengthen the formal economy.

• Financial Literacy: By linking benefits to literacy programs, young employees will learn money management.

• Industrial Boost: Manufacturing sector incentives will encourage long-term investment in production capacity.

• Rural Development: Many jobs are expected to emerge in rural and semi-urban areas, improving regional balance.

Government’s Vision for Youth Employment

Prime Minister Modi emphasized that India’s progress depends on empowering its youth. By providing financial help to first-time employees and easing the burden on companies, the scheme creates a win-win situation.

This aligns with the broader vision of a Viksit Bharat (Developed India), where the country’s growing population is transformed into a skilled and productive workforce.

The Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) is a landmark step toward job creation in India. Covering the period from August 2025 to July 2027, it aims to provide financial assistance to first-time employees and incentives to employers. With a budget of nearly ₹1 lakh crore, the scheme targets 3.5 crore jobs and promises to reshape the employment sector.

By promoting formal employment, boosting manufacturing, and supporting financial literacy, the scheme strengthens the link between economic growth and workforce development. For millions of young Indians, this initiative is not only a chance for financial independence but also a step toward building a stronger, developed nation.