India to launch new job incentive scheme from August 1 aimed at creating over 3.5 crore jobs

The Government of India will implement a new employment-linked initiative, the PM Viksit Bharat Rozgar Yojana (PMVBRY), beginning August 1, 2025. Announced by the Labour Ministry, the scheme aims to enhance job creation across diverse sectors, supporting the government’s broader Viksit Bharat agenda for inclusive and sustainable growth.

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With a financial outlay of ₹99,446 crore, the programme targets the creation of over 3.5 crore jobs within two years. Around 1.92 crore of these positions are expected to be filled by individuals entering the workforce for the first time. The benefits under PMVBRY will apply to jobs created between August 1, 2025, and July 31, 2027.

The scheme is divided into two components. Part A focuses on first-time employees who register with the Employees’ Provident Fund Organisation (EPFO) and earn up to ₹1 lakh per month. Eligible employees will receive a wage benefit equivalent to one month’s EPF wage, capped at ₹15,000, in two instalments—after six months and again after one year of continuous service. A portion of this incentive will be placed in a deposit account to promote savings.

Part B targets employers, offering up to ₹3,000 per month per additional hire for two years, with extended support for manufacturing firms. Eligibility requires hiring a minimum of two or five new employees depending on the establishment size and retaining them for at least six months.

Incentives will be disbursed through the Direct Benefit Transfer and PAN-linked systems.