Government Launches ₹1 Lakh Crore Scheme to Boost Job Creation
The government has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY), a central scheme with a ₹1 lakh crore outlay aimed at creating over 3.5 crore jobs. The program offers incentives to both employers and first-time employees to stimulate formal sector employment. Under the scheme, which runs from August 2025 to July 2027, first-time employees will receive a one-time cash incentive, while employers will be rewarded for generating additional employment, with a special focus on the manufacturing sector.
Unpacked:
First-time employees joining EPFO-registered establishments between August 1, 2025, and July 31, 2027, who have not been EPFO members before and earn up to ₹1 lakh per month, are eligible. They must remain employed for at least six months for the first instalment and 12 months with financial literacy training for the second instalment.
First-time employees receive up to ₹15,000 as a one-time incentive in two instalments: after six months and after twelve months (with financial literacy training). Employers hiring additional eligible employees receive up to ₹3,000 per month per new employee for two years, extendable to four years for manufacturing.
Employees must join an EPFO-registered company, earn up to ₹1 lakh/month, and generate a UAN using Aadhaar-based face authentication. Employers must have an EPFO code, register on the portal, hire eligible workers, file timely PF contributions, and maintain new hires for at least six months to qualify for incentives.
The manufacturing sector is prioritized because it has high potential for large-scale job creation and economic growth. Incentives for employers in manufacturing are extended to four years, reflecting the government's aim to boost industrial employment and support India's broader goal of becoming a developed nation by 2047.