PM Viksit Bharat Rozgar Yojana: Government Unveils Nearly Rs 1 Lakh Crore Employment Scheme To Kick Off Aug. 1

The Centre's new employment-linked initiative, titled the PM Viksit Bharat Rozgar Yojana, will come into effect from Aug. 1, 2025, the government announced on Friday. Approved earlier by the Union Cabinet and chaired by Prime Minister Narendra Modi, the scheme aligns with the broader Viksit Bharat vision and aims to generate inclusive and sustainable employment opportunities across sectors.

With an outlay of Rs 99,446 crore, the scheme targets the creation of over 3.5 crore jobs in two years, of which 1.92 crore will be first-time entrants into the workforce. The benefits will apply to jobs created between Aug. 1, 2025 and July 31, 2027, and are designed to support both employees and employers, with a strong push for employment in the manufacturing sector.

The scheme has two parts. Part A focuses on first-time employees registered with the EPFO. They will receive EPF wage incentives of up to Rs 15,000, split into two instalments: after six months and twelve months of continuous employment. The second instalment will require completion of a financial literacy programme. A portion of the incentive will be held in a savings instrument and released later to promote saving habits. Employees earning up to Rs 1 lakh per month will be eligible.

Part B supports employers hiring additional workers. Incentives of up to Rs 3,000 per month per employee will be provided for two years. In the case of manufacturing, this benefit extends to the third and fourth years. Employers must hire at least two new employees (if they have fewer than 50 staff) or five (if they have 50 or more), with each new hire retained for at least six months.

The monthly employer incentives will be tiered: up to Rs 1,000 for employees earning up to Rs 10,000, Rs 2,000 for those earning between Rs 10,001 and Rs 20,000, and Rs 3,000 for salaries above Rs 20,000, up to Rs 1 lakh. Employees with EPF wages below Rs 10,000 will receive proportionate incentives.

Incentives to employees will be paid via Direct Benefit Transfer using the Aadhaar Bridge Payment System, while employer incentives will be credited directly to PAN-linked accounts.