PM Viksit Bharat Rozgar Yojana: ₹1 Lakh Crore Scheme to Create 3.5 Crore Jobs

byPaytm Editorial TeamAugust 18, 2025
Pradhan Mantri Suraksha Bima Yojana
Key Takeaways
  • Largest employment scheme: ₹1 lakh crore budget makes it one of India's biggest job creation initiatives
  • Dual approach: Benefits both job seekers and job creators simultaneously
  • Quick implementation: Aims to create 3.5 crore jobs within two years
  • Digital payments: Uses modern technology for transparent and efficient fund transfer
  • Workforce formalization: Brings more workers under social security coverage
  • Manufacturing boost: Special incentives for industrial job creation
  • Financial inclusion: Includes savings component and financial literacy training

Source: PIB Press Release
Prime Minister Narendra Modi announced a massive employment generation scheme during his 12th Independence Day speech from Red Fort on August 15, 2025. The Pradhan Mantri Viksit Bharat Rozgar Yojana, with a budget of ₹1 lakh crore, aims to create over 3.5 crore job opportunities within two years.

This landmark initiative represents a major step toward building a bridge from independent India (Swatantra Bharat) to prosperous India (Samriddha Bharat) through massive employment generation across all sectors.

How the Scheme Works: Two-Part Structure

The employment scheme is divided into two main parts – one focusing on supporting first-time employees and another on encouraging employers to create new jobs.

Part A: Financial Support for First-Time Workers

The first part targets young people entering the workforce for the first time who are registered with the Employees’ Provident Fund Organisation (EPFO). Key benefits include:

  • Cash incentive of up to ₹15,000 paid in two installments
  • Eligibility: Employees earning up to ₹1 lakh salary per month
  • First installment: Paid after 6 months of continuous service
  • Second installment: Paid after 12 months of service plus completion of financial literacy program
  • Savings component: Part of the incentive will be deposited in a savings account for a fixed period
  • Expected beneficiaries: 1.92 crore first-time employees

Part B: Incentives for Job-Creating Employers

The second part encourages businesses to hire more workers by providing financial incentives to employers:

  • Monthly incentive: Up to ₹3,000 per month per new employee
  • Duration: Two years for all sectors, extended to 3rd and 4th years for manufacturing
  • Eligibility: New employees with salaries up to ₹1 lakh
  • Minimum employment period: At least 6 months of sustained employment required
  • Expected impact: Creation of nearly 2.60 crore additional jobs
  • Special focus: Manufacturing sector gets extended benefits

Payment and Implementation Details

Direct Benefit Transfer System

  • For employees: All payments under Part A will use Direct Benefit Transfer (DBT) through Aadhaar Bridge Payment System (ABPS)
  • For employers: Payments under Part B will be made directly to PAN-linked bank accounts

Sector-Wise Impact

The scheme targets job creation across all economic sectors with special emphasis on manufacturing, which will receive extended incentives for up to four years to boost India’s industrial growth.

Key Benefits and Objectives

Author

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FAQs

Who is eligible for the ₹15,000 incentive under this scheme?

First-time employees registered with EPFO who earn up to ₹1 lakh per month are eligible. They must complete 6 months of service for the first installment and 12 months plus a financial literacy program for the second installment.

How much financial support do employers get for hiring new workers?

Employers receive up to ₹3,000 per month for each new employee for two years. Manufacturing sector employers get this incentive extended to the 3rd and 4th years as well, provided the employment is sustained for at least 6 months.

When will the scheme start and how long will it run?

While the exact start date wasn't specified in the announcement, the scheme aims to create 3.5 crore jobs within two years. The government expects to benefit 1.92 crore first-time employees and create 2.60 crore additional employment opportunities.

How will the money be transferred to beneficiaries?

Employees will receive payments through Direct Benefit Transfer (DBT) using the Aadhaar Bridge Payment System (ABPS). Employers will receive incentives directly in their PAN-linked bank accounts, ensuring transparent and efficient fund transfer.

What is special about the savings component mentioned in the scheme?

A portion of the ₹15,000 incentive given to employees will be deposited in a savings instrument or deposit account for a fixed period. This encourages young workers to develop saving habits and can be withdrawn later, promoting financial discipline among youth.
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