PM Viksit Bharat Rozgar Yojana: Prime Minister Narendra Modi has unveiled a major employment initiative, announcing a ₹15,000 cash incentive for young Indians securing their first private-sector job, as part of a broader strategy to combat escalating joblessness. The announcement, made during his Independence Day address from the Red Fort, comes at a time when youth unemployment rates hover around 9-10% in urban areas, according to recent labor surveys, highlighting the urgency of targeted interventions to boost hiring and skill development.
Understanding the PM Viksit Bharat Rozgar Yojana
The scheme, officially named Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), carries a ₹99,446 crore budget and aims to generate over 3.5 crore jobs within two years, starting from August 1, 2025. It replaces the earlier Employment Linked Incentive program and focuses on first-time entrants to the workforce, particularly those earning up to ₹1 lakh per month. Under the plan, eligible individuals receive up to ₹15,000 in two installments—after six months and one year of employment—provided they complete a financial literacy course. A portion of this aid is directed into a savings account to promote long-term financial habits.
🚨#Breaking
— theequitysniper (@theequitysniper) August 15, 2025
PM Modi launches Rs 1 lakh crore "PM Viksit Bharat Scheme".
Youths to get ₹15,000 from govt on their first private sector job.
This will benefit over 3 crore youths 🔥 pic.twitter.com/3lUxKUVxlG
For employers, the initiative offers up to ₹3,000 per month per new hire for the first year, extending to four years in manufacturing, to encourage job creation. To qualify, companies must be registered with the Employees’ Provident Fund Organisation (EPFO) and meet hiring thresholds, such as adding at least two employees for firms with under 50 staff.
This move addresses a critical gap: India’s unemployment rate for those aged 15 and above stood at 4.8% in 2019-20 per PLFS data, but experts note the figure masks underemployment and a skills mismatch, with over 20% of graduates jobless.
How to Claim the ₹15,000 Incentive
Eligibility is straightforward but tied to formal employment:
- Be a first-time employee in the private sector with a salary of ₹1 lakh or less per month.
- Join an EPFO-registered establishment after August 15, 2025.
- Create a Universal Account Number (UAN) via Aadhaar-based authentication on the UMANG app.
- Remain employed for at least six months for the first ₹7,500 installment, and complete 12 months plus a financial awareness program for the remaining amount.
No separate application is needed; the incentive is disbursed directly to an Aadhaar-linked bank account through Direct Benefit Transfer (DBT). Employers handle the backend by filing monthly Electronic Challan cum Return (ECR) with PF contributions.
YouTube tutorials from financial channels like those explaining government schemes demonstrate the process, emphasizing the need for accurate Aadhaar details to avoid delays.
Eligibility Criteria: Who Can Claim the ₹15,000?
To qualify for the incentive, applicants must meet specific conditions designed to target fresh entrants to the formal workforce:
- Employment Status: You must be a first-time employee in the private sector, joining after August 15, 2025. This excludes those with prior formal jobs or self-employment.
- Salary Threshold: Monthly earnings should not exceed ₹1 lakh. The scheme focuses on entry-level positions to support graduates and young professionals.
- EPFO Registration: Employment must be with an EPFO-registered establishment. This ensures formal tracking and compliance.
- Age and Demographics: Primarily aimed at youth aged 18-29, though no strict age limit is specified. Women and disadvantaged groups may receive priority in related skilling tie-ins.
- Other Requirements: Complete a mandatory financial literacy course after six months of employment to unlock the full benefit.
Government data from the Ministry of Labour indicates this could cover around 1.92 crore new hires by 2027, prioritizing sectors like manufacturing and services. Experts note that exclusions apply to gig workers or informal jobs, urging a push for broader formalization.
Step-by-Step Application Process
Applying is streamlined through existing systems, with no separate portal required:
- Secure Employment: Land a job in an EPFO-registered private firm with a salary ≤ ₹1 lakh/month.
- Register with EPFO: Upon joining, get a Universal Account Number (UAN) via Aadhaar authentication on the UMANG app or employer portal.
- Complete Onboarding: Employer files monthly Electronic Challan cum Return (ECR) to confirm your status.
- Claim Incentive: After six months, complete the financial literacy module (online via government apps). The first installment is auto-credited; the second follows at 12 months.
- Track Progress: Use the UMANG or EPFO app for status updates and notifications.
YouTube tutorials from official channels like those from the Ministry of Labour demonstrate the process, emphasizing Aadhaar linkage to avoid delays. No fees apply, but accurate details are crucial to prevent rejections.
The Joblessness Crisis: Why This Matters Now
India’s unemployment challenge has intensified post-pandemic, with PLFS reports showing rates climbing to 6% in urban youth segments. Modi highlighted this in his speech, framing the yojana as a tool to empower 3.5 crore young people amid economic slowdowns. The scheme targets new hires, aiming to create 1.92 crore first-time jobs by July 2027, with a focus on manufacturing to revive sectors hit by automation and global trade shifts.
Government data from the Ministry of Labour notes that initiatives like MGNREGA and Skill India have created millions of opportunities, but structural issues persist, including a mismatch between education and job requirements.
Expert Views: A Step Forward or Short-Term Fix?
Analysts largely welcome the incentive but question its depth. In a Business Standard report, an economist described it as a “timely boost” for entry-level workers, potentially reducing urban migration by encouraging local hiring. “It incentivizes formalization, which is key to long-term growth,” the expert said, noting similar global models like apprenticeship subsidies in Germany.
However, critics argue it’s insufficient amid soaring joblessness. A YouTube analysis from an economic think tank channel points out that with 1 crore youth entering the workforce annually, the scheme covers only a fraction. “Without addressing skilling gaps, it’s like a band-aid on a deeper wound,” the commentator warned, citing NITI Aayog data on underemployment.
HR professionals, in a Hindustan Times discussion, praise the employer incentives for spurring recruitment, especially in MSMEs, but call for streamlined EPFO processes to avoid bureaucratic hurdles.
Potential Impact
Positively, the ₹15,000 aid could ease financial entry barriers for fresh graduates, covering initial costs like relocation or training. For businesses, the subsidies lower hiring risks, potentially creating a virtuous cycle of job growth. Economically, it supports Modi’s vision of a self-reliant India by formalizing labor markets and boosting consumption.
Challenges include implementation: Past schemes like Atmanirbhar Bharat Rozgar Yojana faced uptake issues due to complex eligibility. Amid joblessness soaring to 8% in some states, experts urge complementary measures like vocational training reforms.
In essence, while the incentive offers immediate relief, its success hinges on execution and broader economic recovery. As applications open, young job seekers should monitor official portals for updates to capitalize on this opportunity.
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