New Employment Scheme Launched to Boost Job Creation
The Union Cabinet has launched the Pradhan Mantri Viksit Bharat Rojgar Yojana (PMVBRY) on July 1, 2025, as part of a strategic initiative to enhance job creation and employability across various sectors, especially in manufacturing and for micro, small, and medium enterprises (MSMEs). With a budget of Rs. 99,446 crore, this scheme aims to create over 3.5 crore jobs within a two-year period.
Employment generation will be incentivized through a structured approach under the PMVBRY. Beginning with the registration of new jobs starting August 1, 2025, and extending until July 31, 2027, the scheme is designed to promote both existing and new establishments. First-time employees will be eligible for an incentive equal to one month’s wage under the Employees’ Provident Fund (EPF), capped at ₹15,000.
According to the details shared by Minister of State for Labour and Employment, Sushri Shobha Karandlaje, the incentive will be paid in two installments during the first year of employment. The first installment, amounting to up to ₹7,500, will be released after the completion of six months of continuous employment. To qualify for the second installment, employees must successfully complete a required Financial Literacy Programme after twelve months of employment. The second payment will be deposited into a suitable savings instrument for a designated duration.
Moreover, Part B of the scheme is aimed at benefiting employers, offering an additional incentive of up to ₹3,000 per month for each job created that is maintained for at least six months. This dual-pronged approach is geared towards not only creating jobs but also ensuring that these positions are stable and contribute to the economy.
In parallel, the Aatmanirbhar Bharat Rojgar Yojana (ABRY), which commenced on October 1, 2020, completed its beneficiary registration on March 31, 2022. This previous scheme was focused on incentivizing employers during the Covid-19 pandemic to create new jobs and recover lost employment. By the end of March 2024, ABRY had benefitted 60.49 lakh individuals across the country.
Overall, the implementation of PMVBRY is seen as a significant move towards revitalizing the labor market and supporting the growth of small enterprises, ensuring that workers find meaningful employment opportunities while fostering a robust social security framework.
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