How will Modi Govt Roll Out Viksit Bharat Rozgar Yojana?

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Scheme offers incentives to first-time employees and employers; aims to formalize workforce, boost manufacturing

By TRH News Desk

New Delhi, August 15, 2025 — Prime Minister Narendra Modi, in his 12th Independence Day address from the Red Fort, unveiled the Pradhan Mantri Viksit Bharat Rozgar Yojana, an employment generation scheme with a financial outlay of nearly ₹1 lakh crore. Designed to create 3.5 crore jobs within two years, the programme marks a major push to strengthen the bridge from “Swatantra Bharat to Samriddha Bharat.”

The scheme has two components:

Part A – Support to First-Time Employees:
Targeting first-time employees registered with the EPFO, Part A will offer incentives of up to ₹15,000 in two instalments for those earning salaries up to ₹1 lakh annually.

The first instalment will be given after six months of continuous service, and the second after a year, following completion of a financial literacy programme. A portion will be deposited into a savings instrument to promote long-term financial discipline.

This component is expected to benefit 1.92 crore first-time employees.

Part B – Incentives for Employers:
Employers hiring additional employees with salaries up to ₹1 lakh will receive ₹3,000 per month per employee for two years. In the manufacturing sector, the incentive will extend to the third and fourth years as well.

The government estimates this will incentivize the creation of 2.6 crore additional jobs.

Direct Benefit Transfers (DBT) will ensure transparent payments to employees via the Aadhaar Bridge Payment System and to employers through PAN-linked accounts.

Labour Minister Mansukh Mandaviya lauded the initiative, saying, “This will not only generate massive employment but also formalize the workforce by bringing millions under social security coverage.”

The Viksit Bharat Rozgar Yojana builds on the Union Budget 2025 announcement of a National Internship Scheme, which supports private-sector employers in providing stipends to interns. That programme was aimed at skilling youth and easing their transition into formal jobs — a vision now expanded through today’s large-scale employment push.

With the scheme’s focus on manufacturing growth, formal workforce expansion, and youth empowerment, the government hopes to accelerate India’s journey towards becoming a Viksit Bharat by 2047.

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