Prime Minister Narendra Modi, in his Independence Day address from the Red Fort on Friday, announced the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana, a ₹1 lakh crore employment scheme aimed at creating over 3.5 crore jobs in the next two years.
Under the plan, youth entering their first private sector job will receive ₹15,000 in two instalments, while employers hiring them will also be eligible for incentives. The benefits will apply to jobs created between August 1, 2025, and July 31, 2027, with a focus on boosting employment across sectors, particularly manufacturing.
With an outlay of ₹99,446 crore, the scheme is divided into two parts:
- Part A – For First-Time Employees: EPFO-registered workers earning up to ₹1 lakh annually will receive one month’s EPF wages, up to ₹15,000, paid in two instalments—after six months of service and again after 12 months along with completion of a financial literacy programme. A portion of the aid will be kept in a fixed savings instrument to promote long-term financial security.
- Part B – For Employers: Companies hiring employees earning up to ₹1 lakh will receive up to ₹3,000 per month per additional hire for two years, with manufacturing firms eligible for incentives in the third and fourth years. To qualify, EPFO-registered establishments must add at least two new employees if their workforce is under 50, or five if it is 50 or more, and maintain this number for at least six months.
Payments to employees will be made via Direct Benefit Transfer using the Aadhaar Bridge Payment System, while employer incentives will be credited directly to PAN-linked bank accounts.
Modi said the scheme reflects the government’s commitment to inclusive and sustainable job creation, calling it a major boost for both the youth and India’s growth trajectory.