PM Modi Launches PM-VBRY: Historic Employment Initiative for Youth
New Delhi, August 15, 2025 – On India’s 78th Independence Day, Prime Minister Narendra Modi announced the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) from the Red Fort. With a total allocation of ₹99,446 crore, the scheme is aimed at tackling youth unemployment and providing financial incentives for first-time private sector employees. The ambitious program seeks to generate over 3.5 crore jobs within the next two years, marking one of the largest employment-focused initiatives in India’s recent history.
Objectives and Vision
The PM-VBRY is designed to provide young Indians with meaningful employment opportunities while encouraging a culture of financial literacy and savings. The scheme targets first-time private sector employees, ensuring that youth entering the workforce are financially supported and motivated to retain long-term employment.
Prime Minister Modi emphasized that the scheme is part of a broader vision to make India a global employment hub, providing equitable opportunities for every young citizen. By offering incentives to both employees and employers, the government aims to stimulate economic growth, reduce unemployment rates, and strengthen the formal job sector across the country.
Financial Incentives for Employees
One of the key features of PM-VBRY is the financial support provided to first-time job seekers. Eligible employees will receive ₹15,000 in two installments:
First Installment: ₹7,500 after six months of continuous employment.
Second Installment: ₹7,500 after twelve months, upon completion of a financial literacy program.
Additionally, a portion of the second installment will be deposited into a designated savings account, encouraging long-term savings habits. This structure ensures that employees benefit not only in the short term but also develop a foundation for financial security and responsible money management.
Incentives for Employers
PM-VBRY also focuses on motivating employers to hire and retain new employees. Companies that hire fresh talent will receive a monthly incentive of ₹3,000 per employee. For manufacturing companies, this benefit extends up to four years, compared to two years for other sectors.
By offering these incentives, the government hopes to boost private sector employment, particularly in industries that are key drivers of economic growth. This approach ensures a sustainable employment ecosystem where both employees and employers gain tangible benefits.
Implementation Timeline and Administration
The PM-VBRY came into effect on August 1, 2025, and will run until July 31, 2027. The Employees’ Provident Fund Organisation (EPFO) is responsible for administering the scheme, ensuring transparency and efficient processing.
Employers and employees can register online via the official EPFO portal, making the application process digital-friendly and accessible nationwide. This move is expected to reduce paperwork, prevent delays, and facilitate a smooth disbursement of incentives.
Eligibility Criteria
To qualify for the scheme, employees must:
Be first-time job seekers in the private sector.
Join an EPFO-registered company between August 1, 2025, and July 31, 2027.
Not have been members of an Exempted Trust or EPFO before August 1, 2025.
Ensure EPF contributions are received by the relevant authorities in a timely manner.
Employers must hire eligible employees, maintain EPFO compliance, and adhere to all scheme regulations to claim incentives.
Expected Impact on Economy and Youth Employment
The PM-VBRY is projected to create 1.92 crore jobs for first-time job seekers. Beyond job creation, the scheme will promote financial literacy, long-term savings, and employment formalization. By moving young workers from informal to organized sectors, the government aims to strengthen India’s workforce and stimulate economic productivity.
Experts believe that initiatives like PM-VBRY will help reduce the youth unemployment rate, support industrial growth, and empower a new generation of professionals to contribute effectively to the national economy.
Sectoral Focus and Opportunities
While PM-VBRY applies across all sectors, there is a strategic focus on manufacturing and high-growth industries. By incentivizing the hiring of youth in these sectors, the government aims to address the skills gap and align workforce development with industry requirements. This ensures that young employees not only secure jobs but also acquire skills for long-term career growth.
Global Relevance
Globally, countries have employed similar incentive-driven employment models to address youth unemployment. By providing dual incentives—for employees and employers—PM-VBRY aligns India with international best practices in workforce development. The scheme encourages retention, boosts productivity, and creates a structured pathway for young professionals to establish stable careers
The Pradhan Mantri Viksit Bharat Rozgar Yojana represents a landmark initiative aimed at empowering India’s youth while stimulating private sector growth. By combining financial incentives, employer support, and mandatory financial literacy programs, PM-VBRY ensures that the next generation of workers is both employed and financially secure. With this program, India takes a decisive step toward becoming a hub of opportunities for young professionals and strengthening the country’s overall employment ecosystem.