PM Modi Announces 'Pradhan Mantri Viksit Bharat Rozgar Yojana'. What Is It?
PM Modi launches PM Viksit Bharat Rozgar Yojana from Red Fort, creating 3.5 crore jobs by 2027 with incentives for employees and employers.
In a major push for employment generation, Prime Minister Narendra Modi announced the launch of the PM Viksit Bharat Rozgar Yojana (PM-VBRY) today from the historic Red Fort. The scheme, which will officially come into effect from August 1, 2025, marks a significant step under the Viksit Bharat initiative, aiming to create sustainable, inclusive job opportunities across the country.
Previously known as the Employment Linked Incentive (ELI) Scheme, PM-VBRY comes with a staggering outlay of ₹99,446 crore, approved by the Union Cabinet, and is designed to generate over 3.5 crore new jobs over the next two years, from August 2025 to July 2027. Impressively, nearly 1.92 crore positions will be dedicated to first-time entrants into the workforce, giving young Indians a much-needed launchpad into employment.
Key Objectives of PM-VBRY
- Drive employment-led economic growth
- Encourage employers across sectors, particularly in manufacturing, to expand hiring
- Promote financial inclusion by ensuring employees are registered with the Employees’ Provident Fund Organisation (EPFO)
How the Scheme Works: A Two-Part Incentive System
Part A – Incentives for First-Time Employees
This component targets individuals joining the workforce for the first time.
- Eligibility: Employees earning up to ₹1 lakh/month
- Incentive: One month’s EPF contribution (up to ₹15,000), paid in two installments:
- 1st installment: After 6 months of continuous employment
- 2nd installment: After 12 months, upon completion of financial literacy training
- A portion of the incentive is locked into a savings instrument, encouraging long-term financial security
Part B – Incentives for Employers
Designed to motivate businesses to create additional jobs, especially in manufacturing, this part provides direct support to employers.
- Eligibility: Employees earning up to ₹1 lakh/month
- Incentive: Up to ₹3,000/month per new employee for two years. In manufacturing, this extends to the third and fourth years.
Hiring Requirements:
- Companies with fewer than 50 employees must hire at least 2 additional workers
- Companies with 50 or more employees must hire at least 5 additional workers
- Jobs must be maintained for a minimum of 6 months
Incentive Payment Process
- Employees (Part A): Payments made via Direct Benefit Transfer (DBT) through Aadhaar-based ABPS
- Employers (Part B): Incentives credited directly to PAN-linked bank accounts
Why PM-VBRY Matters
In today’s context, with India’s young population swelling and the economy recovering from post-pandemic disruptions, PM-VBRY could be a game-changer. By combining financial support for employees and incentives for employers, the scheme not only boosts immediate employment but also encourages long-term workforce stability.
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