Introduction
On the occasion of India’s 79th Independence Day, Prime Minister Narendra Modi announced a historic employment-linked scheme called the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY). With a massive investment of nearly ₹1 lakh crore, the program aims to generate over 3.5 crore jobs across the country in the next two years. This initiative is not just about creating employment but also about building a stronger foundation for a self-reliant and developed India by 2047.
Objectives of the Scheme
The PM-VBRY has been designed with a dual focus—encouraging youth to enter the formal job sector and supporting employers who create new opportunities. The scheme intends to:
- Provide direct financial support to first-time job seekers.
- Encourage private sector companies to expand their workforce.
- Strengthen India’s social security ecosystem.
- Prioritize manufacturing and emerging industries for sustainable job creation.
Structure of the Scheme
The scheme is divided into two main parts—Part A for employees and Part B for employers.
Part A – Incentives for First-Time Employees
- Young professionals joining the private sector for the first time will receive financial assistance.
- Employees earning up to ₹1 lakh per year are eligible.
- A total incentive of up to ₹15,000 is provided in two stages:
- First installment after 6 months of continuous employment.
- Second installment after 12 months, subject to completing a financial literacy program.
- A portion of the second installment will be invested in a savings instrument to promote long-term financial planning.
Part B – Incentives for Employers
- Employers hiring new staff will receive monthly support for each additional employee:
- ₹1,000 per month for salaries up to ₹10,000.
- ₹2,000 per month for salaries between ₹10,000 and ₹20,000.
- ₹3,000 per month for salaries up to ₹30,000.
- Incentives are provided for 2 years for most sectors, and up to 4 years for manufacturing.
- Eligibility criteria:
- Small companies with less than 50 employees must hire at least 2 new staff.
- Larger companies with 50 or more employees must hire at least 5 new staff.
- New hires must remain employed for at least 6 months for benefits to apply.
Implementation Timeline and Funding
- The scheme officially launched on 15 August 2025.
- It covers jobs created between 1 August 2025 and 31 July 2027.
- Government funding for this initiative is estimated at ₹99,446 crore, making it one of the largest job creation programs in India’s history.
Registration and Payment Process
A dedicated online portal has been introduced where both employees and employers can register.
- Employees will receive their incentives directly into their bank accounts through Direct Benefit Transfer (DBT).
- Employers will get incentives credited to their PAN-linked business bank accounts.
- To participate, employers must be registered with EPFO and file returns on time.
- Employees will require a Universal Account Number (UAN), which can be generated using the UMANG app with face authentication technology.
Summary Table
| Component | Who Benefits? | Incentive | Duration |
|---|---|---|---|
| Part A | First-time private sector employees | Up to ₹15,000 (in 2 installments) | 6–12 months |
| Part B | Employers hiring new workers | ₹1,000 – ₹3,000 per employee per month | 2 years (4 years for manufacturing) |
Expected Impact
- Nearly 2 crore youth entering the workforce for the first time are expected to benefit directly.
- Employers could generate an estimated 2.6 crore formal jobs under this scheme.
- The initiative will strengthen formal employment, expand social security coverage, and empower India’s young population to contribute to economic growth.
Conclusion
The Pradhan Mantri Viksit Bharat Rozgar Yojana is a bold step toward transforming India’s employment landscape. By supporting both employees and employers, the scheme promises to boost job creation, encourage formal employment, and ensure financial security for millions of families. It is not just an employment program—it is a cornerstone in India’s journey toward becoming a Viksit Bharat (Developed India) by 2047.