Prime Minister Narendra Modi on Friday announced the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana, a ₹99,446 crore employment scheme designed to create over 3.5 crore jobs in the private sector. Unveiled during his Independence Day address at the Red Fort, the programme directly supports young people stepping into their first private sector jobs while incentivising companies to expand hiring.
Under the scheme, first-time employees will receive ₹15,000 in direct financial assistance, paid in two instalments, while companies creating fresh employment opportunities will be rewarded with incentives.
The benefits apply to new jobs created between August 1, 2025, and July 31, 2027. Youth taking up their first private sector role, registered under the Employees’ Provident Fund Organisation (EPFO), will be eligible.
Employees earning up to ₹1 lakh per month can apply. The incentive is equivalent to one month’s EPF wages, capped at ₹15,000, released in two instalments. The first instalment is provided after six months of continuous service, and the second after a year of service combined with the completion of a financial literacy programme.
To encourage long-term savings, a portion of the incentive will be held in a fixed deposit or similar instrument, accessible only after a specified period.
Employers stand to benefit through incentives of up to ₹3,000 per month per additional employee for two years, provided the new employees remain in service for at least six months.
For manufacturing companies, the incentives extend to a third and fourth year as well. To qualify, EPFO-registered firms must hire at least two additional employees if they have fewer than 50 staff, or five additional employees if they employ 50 or more. These positions must be maintained for at least six months.
Payments to employers will be transferred directly into their PAN-linked bank accounts, while payments to employees will be made via Direct Benefit Transfer (DBT) using the Aadhaar Bridge Payment System (ABPS).
Eligible employees and employers will need to register under the EPFO framework to claim benefits. While detailed application guidelines are expected to be issued shortly, the scheme is designed to be fully digital, with payments routed directly through authenticated banking channels.
The government estimates that 1.92 crore young people will benefit as first-time entrants into the workforce under the scheme, with the rest of the jobs coming from expansions in existing businesses. A special focus will be placed on manufacturing, seen as a sector with the highest capacity for sustained job creation.
Prime Minister Modi said the scheme was part of the broader Viksit Bharat mission, aimed at accelerating inclusive and sustainable economic growth. “My country’s youth, today on 15th August, we are launching a scheme worth ₹1 lakh crore for the youth of our country,” he said, adding that it would serve as a platform to boost private sector hiring while ensuring financial security for young workers.
