PM Announces Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) 

In his 12th Independence Day speech (2025), Prime Minister Narendra Modi introduced the Pradhan Mantri Viksit Bharat Rozgar Yojana with an outlay of 1 lakh crores. The scheme will create 3.5 crore jobs within 2 years which is the step towards moving Swatantra Bharat to Samriddha Bharat. It consists of two parts; direct incentives of 15000 rupees to new workers and 3000 rupees every month to the employers employing new workers. Transparency will be by payment of compensation using DBT and PAN linked accounts. It is expected that the scheme will encourage the hiring of youth, formalisation of the workforce and coverage of social security.

Context

• In his 12th Independence Day address(2025), Prime Minister Narendra Modi unveiled the Pradhan Mantri Viksit Bharat Rozgar Yojana with a sizable outlay of 1 lakh crores. 
• The scheme is expected to create 3.5 crore employment in 2 years signifying a transition from Swatantra Bharat to Samriddha Bharat.

Key Points

Overview

• Employment Challenge: Employment of young people and the high ratio of informal labor.
• Policy Push: Government endeavor on demographic dividend based employment generation on a massive scale.
• Economic Linkage: Creating jobs through increases in growth in manufacturing, formalisation and inclusive development.

Budget & Purpose

• Outlay: 1 lakh crore
• Target: 3.5crore jobs within 2 years
• Objective: Increase the rate of youth employment and faster formalisation of labour force

Part A: Support to First Time Employees

• Eligibility: Salaries Below 1 lakh / month, EPFO registered
• Incentive /per month EPF wage (up to 30000) in two instalments
• 1st instalment: following 6 months service
• 2nd instalment: 12 months + fulfilment of financial literacy programme
• Savings push: Incentive portion to be deposited on FD/ savings instruments
• Benefactors: ~1.92 crore workers

Part B Employer incentives

• Incentive: 2 yrs and up to 3000 / month per new worker (salary less than 1 lakh)
• Condition: Job staying-at-least 6 months
• Special Focus Manufacturing sector (benefits extend to 3 rd and 4 th year)
• Beneficiaries: 2.6 crore new job initiatives 

Incentive Payment Mechanism

• Employees: DBT through Aadhaar based Payment System
• Employers: Direct Genesis into PAN-linked accounts
• Facilitates transparency and less leakages

Expected Outcomes

• Job Creation: Local massive employment in various sectors and manufacturing in particular.
• Formalisation of Workforce: The jobs linked to EPFO increase social security coverage.
• Savings Culture: Enhances financial literacy and youth savings.
• Atmanirbhar Bharat: Enhances inclusive growth and self reliance.

Conclusion

PMVBRY is the milestone job creation program aimed at addressing the unemployment and informality within the Indian labour market. It seeks to foster a positive cycle of formalisation, jobs, social security through incentivising the employees and employers. Its success will, however, be subject to the modalities of its effective implementation, proper monitoring, and adoption within manufacturing and the MSMEs.