Prime Minister Narendra Modi on Friday launched the employment-linked scheme aimed at creating over 35 million jobs within the next two years. Under the scheme, the government will provide ₹15,000 to every individual who secures a job in the private sector.
“Companies which generate more opportunities for providing new employment will also be given incentives,” Modi said.
Officially known as the Pradhan Mantri Viksit Bharat Rojgar Yojana, the scheme was approved by the Union Cabinet in early July with a total outlay of ₹99,446 crore.
Boosting Skills and Long-Term Employability
Experts believe the initiative will encourage organisations to hire fresh talent, train them according to their business needs, and expand India’s pool of skilled professionals. “At the same time, the scheme supports jobseekers by offering incentives to remain in their roles for at least a year, helping them become industry-ready and enhancing their long-term career prospects,” said Aditya Narayan Mishra, MD & CEO of CIEL HR.
Incentives for Employees and Employers
The scheme consists of two components — incentivising both first-time employees and employers for creating additional jobs.
For first-time employees registered with the EPFO, the scheme will offer a one-month wage (up to ₹15,000) in two instalments. Individuals earning below ₹1,00,000 per month will qualify. Beneficiaries will also undergo a financial literacy programme to encourage savings, with part of the incentive held in a savings instrument for a fixed period, accessible at a later date.
For employers, the scheme offers incentives of up to ₹3,000 per month for two years for each additional employee hired. To qualify, companies with a workforce below 50 must hire at least two additional employees, while those with more than 50 staff must create a minimum of five new jobs.
The scheme applies across all sectors, with slightly higher benefits for the manufacturing industry. The government is also considering merging it with the PM Internship Scheme to maximise the impact on job creation.