News Brief
Explained: Rs 1 Lakh Crore PM Viksit Bharat Rozgar Yojana To Support Creation Of Over 3.5 Crore Jobs
PM Modi
At his 12th Independence Day address from the Red Fort, Prime Minister Narendra Modi on Friday (15 August) announced the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana, a flagship employment generation scheme with a financial outlay of nearly Rs 1 lakh crore.
The initiative aims to support creation of over 3.5 crore jobs within the next two years.
Under the scheme, first-time employees registered with the Employees’ Provident Fund Organisation (EPFO) will receive incentives of up to Rs 15,000 in two instalments, while employers creating new jobs will get up to Rs 3,000 per month per employee for two years.
In the manufacturing sector, the employer incentives will extend to the third and fourth years as well.
The scheme is divided into two parts:
Part A – Support to First-Time Employees
Eligibility: First-time employees registered with the Employees’ Provident Fund Organisation (EPFO) and earning salaries up to Rs 1 lakh per month.
Incentive: One month’s EPF wage, up to Rs 15,000, provided in two installments.
Disbursement Schedule:
First installment after completion of 6 months of service.
Second installment after 12 months of service and successful completion of a financial literacy programme.
Savings Encouragement: A portion of the incentive will be placed in a savings or deposit account for a fixed period, accessible at a later date, to promote long-term savings habits.
Part B – Incentives for Employers
Objective: Encourage generation of additional employment across sectors, with a special focus on manufacturing.
Eligibility: The employers will get incentives in respect of new employees with salaries up to Rs 1 lakh.
Incentive: Government support of up to Rs 3,000 per month per new employee for two years, provided the employment is sustained for at least six months.
Manufacturing Sector Boost: Incentives extended for the third and fourth years to further stimulate manufacturing job creation.
Impact: Expected to incentivise employers to generate around 2.6 crore new jobs.
Payment Mechanism
Employees (Part A): Incentives will be disbursed via Direct Benefit Transfer (DBT) through the Aadhaar Bridge Payment System (ABPS).
Employers (Part B): Payments will be made directly into PAN-linked bank accounts.
With ELI Scheme, the government intends to catalyse job creation in all sectors, particularly in manufacturing sector, besides incentivizing youth joining the workforce for the first time, according to an official release.
"An important outcome of the Scheme will also be formalization of the country’s workforce by extending social security coverage for crores of young men and women," the release added.
