Viksit Bharat Rozgar Yojana

Prime Minister Narendra Modi, in his Independence Day address, announced the ‘Viksit Bharat Rozgar Yojana’, a nationwide employment initiative with a budget of nearly ₹1 lakh crore. The scheme, effective from August 15, 2025, aims to create approximately 3.5 crore new jobs over the next two years by incentivizing both employees and employers.

Key Provisions for Employees and Employers

The scheme is managed by the Employees’ Provident Fund Organisation (EPFO) and is split into two parts:

• For Employees: First-time private sector employees who join an EPFO-registered establishment and have a monthly salary of up to ₹1 lakh are eligible for a one-time incentive of up to ₹15,000. This amount is paid in two installments: the first after six months of employment and the second after 12 months, contingent on the completion of a financial literacy module. The payment is transferred directly to the employee’s Aadhaar-linked bank account.
• For Employers: Companies that hire additional employees with a salary of up to ₹1 lakh are eligible for a monthly incentive of up to ₹3,000 per employee. For most sectors, this benefit is available for two years, but for the manufacturing sector, it can be extended for up to four years. To qualify, companies with a workforce of fewer than 50 must hire at least two additional employees, while those with 50 or more employees must hire at least five.