PM Viksit Bharat Rozgar Yojana: Decoding new private jobs scheme for India's youth

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In his Independence Day speech from the ramparts of the iconic Red Fort, Prime Minister Narendra Modi announced, among other things, the launch of PM ‘Viksit Bharat Rozgar Yojana’ to create new employment opportunities for 3.5 crore young Indians.

An office employee. The PM ‘Viksit Bharat Rozgar Yojana’ aims to create new employment opportunities for 3.5 crore young Indians in two years.(Hemant Mishra/Mint Archive)

Under the scheme, which PM Modi said gets going from August 15 itself, newly employed youth will receive ₹15,000 per month in their first private job.

“Today is 15 August, and we are launching the ₹1 lakh crore scheme for the youth of this country…in good news for you, PM Viksit Bharat Rozgar Yojana is being rolled out from today,” the prime minister said in his Independence Day speech.

There are also incentives for private companies that employ them, according to details mentioned in the scheme's website.

On July 1, 2025, the Union Cabinet led by PM Modi approved the PM Viksit Bharat Rozgar Yojana—an employment-linked incentive scheme for job creation in the country. Here’s a look at some of its features:

PM Viksit Bharat Rozgar Yojana

• Scheme Duration: 2 Years (till 31 July 2027)
• Total Outlay: ₹99,446 crore
• Jobs Creation: 3.5 Crore+
• Focus: Manufacturing sector
• Eligibility: Salaried employees earning up to ₹1 lakh

Eligibility criteria

The scheme is aimed at first-time employees and private sector firms. The first-time employees have to register under the Employees Provident Fund Organisation (EPFO) for direct financial incentives under the scheme.

1. The employee has to join EPFO between 1 August 2025 and 31 July 2025
2. She must not be a member of the EPFO before 1 August 2025
3. The EPF contribution should be received from August 2025 or later
4. The monthly gross salary should be less than ₹1 lakh/month
5. The employee should be employed in same firm for at least six months

Incentives

The employee, who fulfils the above criteria, can avail up to ₹15,000/month, or one month’s EPF wage, under the PM VBRY. The first instalment will come after six months of continuous employment in one firm, while the second will be due in 12 months from the date of joining. This second tranche will be deposited in a savings instrument to promote long-term savings.

What’s in it for employer?

According to the government, only EPFO-registered firms can participate in the PM VBRY to get monthly incentives for hiring new workers subscribed to the scheme. The said company has to hire two such workers if their staff strength is less than 50, and at least five if they employ more than 50 workers.

The benefits for them are as under:

• Incentive of up to ₹3,000 per employee per month, based on salary
• Incentive is paid every six months over two years of continuous job
• The incentive is for two years, four years if in manufacturing sector

Payment mode

The incentives are paid to employees via the direct benefit transfer scheme through the Aadhaar Bridge Payment System. For employers, it’s a direct payment into their PAN-linked official bank accounts.

How to claim PM VBRY incentives

An employer has to first generate an EPFO code on the Shram Suvidha portal and then register on the EPFO Employer Login website. For new employees earning less than ₹1 lakh/month, an employer has to file a monthly Electronic Challan cum Return (ECR) with the provident fund contributions. This staff has to be in continuous employment for at least six months.

The Electronic Challan cum Return is a document used by employers to pay contributions to the Employees Provident Fund Organisation (EPFO) and Employees Pension Scheme (EPS).

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