PM VIKSIT BHARAT ROZGAR YOJANA
Why in News
On 15th August 2025, during his 12th Independence Day address from Red Fort, Prime Minister Narendra Modi announced a major employment initiative:
Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY)
- Aim: Generate 3.5 crore jobs in 2 years
- Outlay: ₹1 lakh crore
OBJECTIVE
To boost youth employment and accelerate India’s transition from Swatantra Bharat to Samruddha Bharat by:
- Creating massive job opportunities
- Supporting first-time workers
- Encouraging employers to hire more workers
- Formalizing the workforce
KEY FEATURES
Part A – Support to First-Time Employees
- Target Group: First-time employees registered with EPFO
- Incentive: Up to ₹15,000 (in two instalments)
- Eligibility: Salary up to ₹1 lakh/month
- Payment Conditions:
- 1st instalment after 6 months of continuous service
- 2nd instalment after 12 months and completion of financial literacy program
- Savings Component: Part of the incentive to be deposited in a locked savings instrument
- Expected Beneficiaries: Approx. 1.92 crore youth
Part B – Incentives for Employers
- Objective: Encourage additional job creation, especially in manufacturing sector
- Incentive: Up to ₹3,000/month per new employee, for 2 years
- Eligibility:
- New employees with salary up to ₹1 lakh/month
- Employment sustained for at least 6 months
- Manufacturing Sector Boost: Incentives extended to 3rd & 4th years
- Expected Employment Generated: Approx. 2.6 crore jobs
Incentive Payment Mechanism
- Part A (Employees): Payments through DBT using Aadhar-Based Payment System (ABPS)
- Part B (Employers): Payments to PAN-linked bank accounts
STRATEGIC SIGNIFICANCE
Economic Impact:
- Boosts job creation and formal employment
- Focus on youth empowerment, especially first-time job seekers
- Targets manufacturing-led growth
- Reinforces Make in India and Atmanirbhar Bharat objectives
Workforce Formalization:
- Brings more workers into the formal economy
- Expands EPFO and social security coverage
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