PM VIKSIT BHARAT ROZGAR YOJANA from Vajirao & Reddy Institute

PM VIKSIT BHARAT ROZGAR YOJANA

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

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