Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) – A Push for Youth Employment

In his 12th Independence Day speech (2025) PM Modi mit elevated the Pradhan Mantri Viksit Bharat Rozgar Yojana owing an outlay of 1 lakh crore rupees. By creating 3.5 crore employment in 2 years, the scheme is consequently a historic move towards swatantra Bharat to Samriddha Bharat. It consists of two parts, direct incentives of up to 15,000 and up to 3,000 per month to create new employment opportunities by the employers of first time employees. Transparency will be attained through settlement by the implementation of Payments via DBT and PAN-linked accounts. The scheme will enhance employment, formalization of the work force, and widening of social security.

Context 

• In his 12th Independence Day speech (2025) PM Modi mit elevated the Pradhan Mantri Viksit Bharat Rozgar Yojana owing an outlay of 1 lakh crore rupees. 

• By creating 3.5 crore employment in 2 years, the scheme is consequently a historic move towards swatantra Bharat to Samriddha Bharat.

Key Points

Overview

• Employment Challenge: there is a high level of unemployment and informal labor in India amongst the youth.

• Policy Push: The current move of the government is on mass employment to address challenges of demographic dividend.

• Economic Linkage: there is a connection between manufacturing growth, formalisation of the economy, and inclusive development at the level of employment generation.

Cost & Target

• Outlay: 1 lakh crore; Jobs to be created: 3.5 crore to be created in 2 years.

• Objective: To increase young people in employment and formalisation of the employment workforce.

Part A Support to First-Time Employees

• Eligibility: employees who are first time joining and registered with EPFO and had salaries equal to or less than 1 lakh/month.

• Incentive: One month EPF salary (up to 15000 made in 2 instalments.

• Disbursement:

• 1st instalment, after 6 months of service.

• 2nd instalment after 12 months + running through a financial literacy programme.

• Savings push: A portion of the incentive will be in a fixed deposit/ savings tool.

• The Beneficiaries are: 1.92 crore first-time employees.

Part B- Employer Incentives

• Incentive: Six new employees up to 2 years or 2 new employees up to 2 years per 1 employee and a reward of up to 3000 per month up to 2 years maximum 600000 (salary of 1,00,000 or less).

• Condition: New jobs were to be maintained during a period of at least 6 months.

• Special Focus: Manufacturing industry where incentives are offered upto 3 rd and 4 th year.

• Projected Beneficiaries: 2.6 crore individuals workforce.

Incentive Payment Mechanism

• Staff: DBT-Aadhar-based Payment System.

• Employers: Immediate transfer into the PAN-linked accounts.

• Puts an end to opacity, minimises leakages.

Expected Outcomes

• Creation of massive employment in every sector and particularly manufacturing.

• EPFO registration and coverage of social security to formalisation of the workforce.

• The promotion of the culture among the young people of saving.

• To improve the concept of Atmanirbhar and Samriddha Bharat.

Conclusion 

The PMVBRY is a milestone in terms of employment generation that has been initiated to address youth unemployment and informality in India. The scheme tries to begin a virtuous circle of job creation, formalisation, and Social security by motivating the employees and the employers.