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DAILY NEWS ANALYSIS
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28 August, 2025
3 Min Read
The Prime Minister recently announced the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana, a new employment-focused initiative aimed at boosting formal job creation in the country.
The scheme aims to create over 3.5 crore formal jobs within a period of two years, by offering direct cash incentives to both first-time employees and employers.
The scheme is divided into two parts:
This part targets first-time employees who are registered with the Employees’ Provident Fund Organisation (EPFO).
Eligible employees with a monthly salary of up to ?1 lakh will receive EPF wage support of up to ?15,000, disbursed in two installments.
1st installment: Payable after 6 months of continuous service.
2nd installment: Payable after 12 months of service and completion of a financial literacy programme.
To promote savings, a portion of the incentive will be retained in a savings instrument or fixed deposit, which the employee can withdraw later.
Aimed at encouraging additional employment generation, especially in the manufacturing sector.
Employers hiring new employees (with monthly salaries up to ?1 lakh) will receive incentives up to ?3,000 per employee per month for a period of two years, provided the employment is sustained for at least six months.
For jobs created in the manufacturing sector, the incentive period will be extended to the third and fourth years as well.
Payments to first-time employees (Part A) will be made via Direct Benefit Transfer (DBT) using the Aadhaar Bridge Payment System (ABPS).
Payments to employers (Part B) will be credited directly to their PAN-linked bank accounts.
This scheme marks a major policy push towards formalizing employment, especially for youth entering the workforce for the first time.
By supporting both workers and employers, it aims to reduce informal sector dependency, boost job stability, and strengthen financial inclusion.
Source: THE HINDU
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