Prime Minister Narendra Modi unveiled the ambitious 'PM Viksit Bharat Rozgar Yojana' during his Independence Day address from the Red Fort on August 15. The Rs 1 lakh crore scheme aims to generate 3.5 crore new jobs across India over the next two years, with a special focus on empowering youth entering the workforce for the first time.
Direct financial support for 1st time private sector employees
Under this flagship initiative, any young person securing their first private sector job will receive a direct incentive of Rs 15,000. The payment will be made in two installments, after six months and after twelve months of continuous employment, through the Employees’ Provident Fund Organisation (EPFO). This supports formal employment transition and encourages greater youth participation in India’s organised workforce.
Incentives to employers driving job creation
To stimulate employment growth, private companies that hire additional employees will receive government incentives of up to Rs 3,000 per employee per month, for two years. The manufacturing sector benefits from extended incentives up to the third and fourth years, encouraging sustained large-scale job creation. Employers must maintain the new hires for at least six months and meet specific hiring thresholds.
Scheme details and targets
- Total investment: Rs 1,00,000 crore
- Jobs to be created: 3.5 crore in two years
- First-time job entrants: Nearly 1.92 crore young beneficiaries
- Eligibility: Employees earning up to Rs 1 lakh per month
- Implementation: Overseen by the Ministry of Labour and Employment and EPFO
Saving habits encouraged through partial incentives
A portion of the Rs 15,000 incentive for first-time employees will be deposited in a savings instrument or fixed deposit, promoting financial literacy and encouraging a culture of savings among the youth.
PM Modi’s vision: A “Double Diwali” for India’s youth
Calling the scheme a “gift to the youth”, Prime Minister Modi described it as a transformative step to economically empower young Indians while accelerating India’s inclusive growth. He emphasised the scheme’s alignment with the 'Atmanirbhar Bharat mission', aimed at fostering self-reliance and employment-led economic development.
Expected impact on the economy
The scheme is set to boost formal sector employment, particularly in manufacturing and services, catalyse private sector expansion, and increase youth engagement in the workforce. By linking job creation with social security benefits under EPFO, it also aims to strengthen the formal social safety net for India’s young workforce.
This comprehensive employment scheme marks a significant milestone in PM Modi’s vision for a developed India by 2047, aiming to ensure that the country’s demographic dividend translates into shared economic prosperity.
