Why in news?
On 31 August and 1 September 2025, PM Modi and Union Minister Dr. Mansukh Mandaviya emphasized the scheme's launch as a pivotal move to convert India's youth potential into national prosperity via large-scale job creation.
 
News Highlights

• The initiative was prominently discussed after its Independence Day announcement and is now being rolled out across India with a focus on formalizing private sector employment.
• Eligible youth (private sector, first job) will receive the incentive in two payments upon meeting employment and savings milestones.
• Employers registered with EPFO will receive up to ₹3,000 per new eligible employee per month.
• Incentives for financial literacy and savings are embedded in the scheme framework.
• Special sectors like MSMEs, manufacturing, and services are primary focus areas for job creation.

Impact and Government Narrative

• The scheme is presented as central to India's vision for economic growth, youth empowerment, and a formal, resilient employment system as India moves toward "Viksit Bharat" by 2047.
• Continuous government communication reinforces the scale (3.5 crore jobs), targeted approach (youth, first-time job seekers), and simplified application via EPFO portals.

About PM-VBRY
The PM Viksit Bharat Rozgar Yojana (PM-VBRY) is a major employment-linked incentive scheme launched by the Government of India to boost job creation, especially for youth entering their first employment in the private sector. It was announced by the Prime Minister on 15 August 2025 and will run from 1 August 2025 to 31 July 2027.

Key Objectives and Features

• The scheme aims to create 3.5 crore new jobs in two years, with a budget outlay of nearly ₹1 lakh crore.
• Focus is on first-time job seekers and incentivizing private sector employers to hire new workers.
• The scheme is part of the larger goal to leverage India’s demographic dividend for economic growth.

Benefits for Youth and Employers

• First-time employees in the private sector will receive a direct financial incentive of ₹15,000, paid in two installments via DBT (Direct Benefit Transfer).
• The first installment (₹7,500) is given after completing six months of continuous employment.
• Employers receive an incentive of up to ₹3,000 per month for each new eligible employee hired during the scheme period.

Eligibility and Application

• Beneficiaries must be private sector employees receiving up to ₹1 lakh monthly salary, and must be taking up their first job (not previously covered by EPFO/exempt trust).
• Employers must register new employees under EPFO and comply with scheme requirements, including EPFO registration and active UAN for employees.
• Applications can be made online through the official EPFO portal and UMANG app.

Additional Conditions and Highlights

• Financial literacy training is mandatory for the release of the second installment of incentive.
• A portion of the incentive is encouraged to be invested in savings instruments.
• Major sectors covered include MSME, manufacturing, services, and technology.

Impact

• The scheme is expected to accelerate job creation, support skill development, promote financial inclusion, and strengthen India’s push toward a self-reliant economy.

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