Pradhan Mantri Viksit Bharat Rozgar Yojana

The Prime Minister recently announced the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana, a new employment-focused initiative aimed at boosting formal job creation in the country.

Objective of the Scheme

The scheme aims to create over 3.5 crore formal jobs within a period of two years, by offering direct cash incentives to both first-time employees and employers.

Key Features of the Scheme

The scheme is divided into two parts:

Part A – Support to First-Time Employees

• This part targets first-time employees who are registered with the Employees’ Provident Fund Organisation (EPFO).

• Eligible employees with a monthly salary of up to ₹1 lakh will receive EPF wage support of up to ₹15,000, disbursed in two installments.

Installment Details:

• 1st installment: Payable after 6 months of continuous service.

• 2nd installment: Payable after 12 months of service and completion of a financial literacy programme.

• To promote savings, a portion of the incentive will be retained in a savings instrument or fixed deposit, which the employee can withdraw later.

Part B – Incentives for Employers

• Aimed at encouraging additional employment generation, especially in the manufacturing sector.

• Employers hiring new employees (with monthly salaries up to ₹1 lakh) will receive incentives up to ₹3,000 per employee per month for a period of two years, provided the employment is sustained for at least six months.

Special Provision for Manufacturing:

• For jobs created in the manufacturing sector, the incentive period will be extended to the third and fourth years as well.

Incentive Payment Mechanism

• Payments to first-time employees (Part A) will be made via Direct Benefit Transfer (DBT) using the Aadhaar Bridge Payment System (ABPS).

• Payments to employers (Part B) will be credited directly to their PAN-linked bank accounts.

Significance

• This scheme marks a major policy push towards formalizing employment, especially for youth entering the workforce for the first time.

• By supporting both workers and employers, it aims to reduce informal sector dependency, boost job stability, and strengthen financial inclusion.