Why in News On 15th August 2025, during his 12th Independence Day address from Red Fort, Prime Minister Narendra Modi announced a major employment initiative: Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY)
  • Aim: Generate 3.5 crore jobs in 2 years
  • Outlay: ₹1 lakh crore
OBJECTIVE To boost youth employment and accelerate India's transition from Swatantra Bharat to Samruddha Bharat by:
  • Creating massive job opportunities
  • Supporting first-time workers
  • Encouraging employers to hire more workers
  • Formalizing the workforce

KEY FEATURES

Part A – Support to First-Time Employees
  • Target Group: First-time employees registered with EPFO
  • Incentive: Up to ₹15,000 (in two instalments)
  • Eligibility: Salary up to ₹1 lakh/month
  • Payment Conditions:
    • 1st instalment after 6 months of continuous service
    • 2nd instalment after 12 months and completion of financial literacy program
  • Savings Component: Part of the incentive to be deposited in a locked savings instrument
  • Expected Beneficiaries: Approx. 1.92 crore youth
Part B – Incentives for Employers
  • Objective: Encourage additional job creation, especially in manufacturing sector
  • Incentive: Up to ₹3,000/month per new employee, for 2 years
  • Eligibility:
    • New employees with salary up to ₹1 lakh/month
    • Employment sustained for at least 6 months
  • Manufacturing Sector Boost: Incentives extended to 3rd & 4th years
  • Expected Employment Generated: Approx. 2.6 crore jobs
Incentive Payment Mechanism
  • Part A (Employees): Payments through DBT using Aadhar-Based Payment System (ABPS)
  • Part B (Employers): Payments to PAN-linked bank accounts

STRATEGIC SIGNIFICANCE

Economic Impact:

  • Boosts job creation and formal employment
  • Focus on youth empowerment, especially first-time job seekers
  • Targets manufacturing-led growth
  • Reinforces Make in India and Atmanirbhar Bharat objectives

Workforce Formalization:

  • Brings more workers into the formal economy
  • Expands EPFO and social security coverage