According to a report by NDTV, Prime Minister Narendra Modi on Friday unveiled the "Pradhan Mantri Viksit Bharat Rozgar Yojana," a massive Rs 1 lakh crore employment initiative aimed at supporting India's youth entering the job market.
Speaking from the Red Fort during his Independence Day address, PM Modi announced that the scheme would take effect immediately and is expected to benefit over 3.5 crore people across the country.
"Today is August 15, and we are launching a Rs 1 lakh crore scheme for the youth of this country. It is good news for you that PM Viksit Bharat Rozgar Yojana is being rolled out from Today," the Prime Minister declared during his 79th Independence Day speech.
The comprehensive employment package, which was approved by the Union Cabinet last month, targets the creation of more than 3.5 crore jobs over a two-year period. Of these, 1.92 crore beneficiaries will be first-time job seekers entering the workforce.
The Ministry of Labour & Employment had previously stated that the scheme aligns with the government's Viksit Bharat initiative and demonstrates the administration's dedication to creating inclusive and sustainable employment opportunities nationwide.
The employment scheme operates through a two-pronged strategy, consisting of two parts :
Part A: Supporting first-time workers
The first component focuses on individuals registered with the Employees' Provident Fund Organisation (EPFO) who are entering the workforce for the first time. These employees will receive one month's EPF wage, capped at Rs 15,000, distributed in two separate payments.
Workers earning up to Rs 1 lakh annually qualify for this benefit. The first payment comes after six months of continuous employment, while the second installment is released after completing 12 months of service and participating in a financial literacy program.
To promote savings habits, a portion of the incentive will be placed in a savings instrument or deposit account for a predetermined period, which employees can access later. All disbursements will be made through Direct Benefit Transfer using the Aadhar Bridge Payment System.
Part B: Employer incentives
The second component aims to stimulate additional employment across all sectors, with particular emphasis on manufacturing. Employers will receive incentives for hiring workers with salaries up to Rs 1 lakh.
The government will provide employers up to Rs 3,000 monthly for two years for each additional employee who maintains sustained employment for at least six months. Manufacturing sector employers will receive extended incentives into the third and fourth years.
EPFO-registered establishments must hire a minimum of two additional employees (for companies with fewer than 50 workers) or five additional employees (for larger organisations) on a sustained basis for at least six months. Employer payments will be transferred directly to their PAN-linked accounts.
The ambitious scheme represents one of the government's largest employment generation initiatives, targeting both job seekers and employers in an effort to boost India's employment landscape.