On the occasion of the 79th Independence Day, Prime Minister Narendra Modi made a series of announcements from the Red Fort aimed at the welfare of farmers, livestock owners, women and others. Likewise, he also introduced a major scheme worth ₹1 lakh crore for the youth from the iconic Red Fort.
Under the newly launched Pradhan Mantri Viksit Bharat Rojgar Yojana, the central government will provide ₹15,000 to youth entering the workforce for the first time.
Additionally, companies that create more job opportunities will be rewarded with incentives. The government will offer up to ₹3,000 per employee to companies hiring fresh graduates. This initiative is expected to generate employment for approximately 3.5 crore young individuals.
The government initially rolled out the program on 1st August. It was also a part of the Union Budget for 2024-25 which was presented on 23rd July. The initiative was intended to be named the Employment Linked Incentive (ELI), however, it was later changed to Viksit Bharat Rojgar Yojana.
Its duration is till 31st July 2027. A total budget of ₹99,446 crore has been allocated and the Employees Provident Fund Organization (EPFO) will oversee its implementation. The primary objective of this program is to boost job creation for youth, small and medium enterprises (MSMEs) as well as diverse sectors like manufacturing, services and technology.
What is the criteria
- Young people enrolling in EPFO for the first time are eligible for this scheme.
- The person must not have been affiliated with EPFO or an Exempted Trust before 1st August 2025.
- The gross salary of the employee should be ₹1 lakh or lower.
- The EPF (Employees Provident Fund) contributions should begin from August 2025 or thereafter.
- The employee must remain with the same company for at least 6 months.
- The company must have registration with EPFO within the period from 1st August 2025 to 31st July 2027, inclusive of both dates.
If monthly income amounts to ₹10,000, the person will receive a maximum of ₹1,000. An incentive of ₹2,000 is allocated for salaries ranging from ₹10,000 to ₹20,000 and ₹3,000 for income between ₹20,000 and ₹1,00,000.
How does the scheme work
The Pradhan Mantri Vikas Bharat Rojgar Yojana is split into two sections. Part A contains provisions for first-time job seekers whereas Part B caters to companies that offer employment.
Part A: It is for those who are entering the job market for the first time and are registered with EPFO. It will benefit around 1.92 crore new employees. They will receive their first month’s salary, capped at ₹15,000, in two instalments (first following 6 months and the next after 12). This benefit is applicable to those earning up to ₹1 lakh annually. The second instalment will be put into a savings or deposit account which the employee can withdraw at a later time, to foster a culture of saving.
Part B: This concentrates on generating more employment opportunities in every sector. Businesses will be incentivized for employees whose salaries do not exceed ₹1 lakh. The government will allocate ₹3,000 per month for each individual to companies for two years, provided he or she remains in their role for at least 6 months. The same will be granted to the manufacturing industry during the third and fourth years as well.
Payments will be made following six, twelve, eighteen, and twenty-four months of consistent employment. Direct Benefit Transfer will be processed to a bank account that has a PAN linked to it. Companies that are registered with EPFO are required to hire a minimum of 2 new persons (for those with less than 50 employees) or 5 new persons (for those with 50 or more employees) for a duration of 6 months.
How to avail benefits
- Obtain an EPFO Code through the Shram Suvidha Portal.
- Create an account on the EPFO Employer Login Portal.
- Recruit new workers with monthly salaries of up to ₹1 lakh.
- Submit Provident Fund (PF) contributions along with monthly Electronic Challan cum Return (ECR) returns.
- Sustain extra workforce for a duration of at least 6 months.
There is no necessity to apply separately for the program. Once the employee opens their PF account for the first time, they will qualify for it but the gross salary must be ₹1 lakh or lower. The government will disburse funds based on the Universal Account Number (UAN) number only.
EPFO’s UAN number, the company’s appointment letter, educational certificate, Aadhaar card, bank account details, mobile number, proof of residence, and a passport-sized photograph are required to access the benefits of teh program.
How the money will be received
- The initial payment will be credited to the employee’s account following the completion of six months with the company.
- The subsequent payment will be made after twelve months of service and the successful completion of the financial literacy program.
- A portion of the funds will be directed to the Provident Fund account to encourage saving habit among the youth.
- Some funds will be deposited directly into the employee’s account.
- The company’s share will be directly transferred to the account via Direct Benefit Transfer (DBT).
Incentives will be disbursed through Direct Benefit Transfer (DBT) utilizing the Aadhar Bridge Payment System (ABPS) to first-time employees and money is going to directly flow into PAN-linked accounts of employers.
