PM Modi unveils ₹1 lakh crore job scheme from Aug

In a massive employment push ahead of the festive season, the Centre has launched the PM Viksit Bharat Rozgar Yojana, a mega ₹99,446 crore job-generation scheme set to roll out from August 1, 2025. Approved by the Union Cabinet and spearheaded by Prime Minister Narendra Modi, the initiative aims to generate over 3.5 crore jobs within the next two years, with nearly 1.92 crore first-time workers expected to join the formal workforce.

The scheme, part of the broader Viksit Bharat vision, has been crafted to benefit both employees and employers across sectors, with a strong emphasis on manufacturing employment. It features two distinct parts to address job creation and retention from both ends of the hiring spectrum.

Part A is designed for first-time employees registered with the Employees' Provident Fund Organisation (EPFO). These individuals will receive EPF wage incentives up to ₹15,000, disbursed in two instalments — one after six months of continuous employment and another after a year. To unlock the second payment, employees must complete a financial literacy course, promoting not just income but smart money habits. A portion of the benefit will be deposited in a savings instrument and released later to encourage saving. This applies to those earning up to ₹1 lakh per month.

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Part B focuses on employers who hire additional workers. Incentives of up to ₹3,000 per month per employee will be offered for two years — and extended to four years for manufacturing companies. To qualify, businesses with fewer than 50 employees must hire at least two new workers, while those with 50 or more must hire five or more, with each new hire retained for at least six months.

The incentive tiers are salary-based:

• ₹1,000/month for employees earning up to ₹10,000

• ₹2,000/month for salaries between ₹10,001 and ₹20,000

• ₹3,000/month for salaries above ₹20,000 up to ₹1 lakh

In a bid to ensure transparency and speed, employee benefits will be transferred directly via the Aadhaar Bridge Payment System, while employer incentives will be credited to PAN-linked bank accounts.

With an employment-first approach, direct cash transfers, and tailored support for industrial hiring, the PM Viksit Bharat Rozgar Yojana is set to be a cornerstone of India’s post-pandemic economic momentum — and a critical step toward realising the government’s developed India vision.

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