Big Announcement From Red Fort: PM Modi Launches ₹1 Lakh Cr Job Boost for Youth

On the morning of India’s 79th Independence Day, the Red Fort once again became the stage for big promises and bold visions. The tricolour fluttered against the August sky, and millions tuned in across the country — from living rooms in small towns to tea stalls in bustling markets — as Prime Minister Narendra Modi addressed the nation. But amid the usual calls for unity and progress, one announcement stood out, especially for young Indians nervously preparing to step into the job market.

The Prime Minister declared the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) — a ₹1 lakh crore employment-linked incentive scheme that will immediately come into effect. Its mission: to give India’s youth a softer landing into their first jobs, while also nudging employers to create more opportunities.

“Those getting their first job in the private sector will receive ₹15,000 from the Centre,” PM Modi said, calling it a step towards building a Viksit Bharat — a developed India that grows by giving its people the right opportunities.

A Nationwide Job Push

The scheme aims to benefit more than 3.5 crore people over the next two years, with nearly 1.92 crore of them being first-time job seekers. In other words, almost every second beneficiary will be someone stepping into the professional world for the very first time.

According to the Ministry of Labour & Employment, which first revealed the plan’s framework last month after Union Cabinet approval, PMVBRY is more than just a cash handout — it’s designed to incentivise both employees and employers to sustain jobs, improve financial literacy, and foster long-term stability in the workforce.

How the Scheme Works

The PMVBRY has two distinct components — Part A for employees and Part B for employers — both linked to the Employees’ Provident Fund Organisation (EPFO).

Part A: Support for First-Time Employees

This is the government’s direct embrace of young workers entering formal employment.

• Who’s eligible?
  Any first-time employee registered with EPFO and earning up to ₹1 lakh per month.

• What’s the benefit?
  A one-month EPF wage — up to ₹15,000 — paid in two instalments.

  • 1st instalment after six months of service.

  • 2nd instalment after 12 months of service and the completion of a financial literacy programme.

• Encouraging saving habits
  A part of this incentive will be locked in a savings instrument or deposit account, ensuring that young workers have a small but meaningful financial cushion they can tap later.

• Payment process
  All transfers will be made through the Direct Benefit Transfer (DBT) system using the Aadhaar Bridge Payment System (ABPS), cutting out middlemen and delays.

Part B: Incentives for Employers

If Part A gives confidence to job seekers, Part B is meant to give employers a reason to hire more people.

• Who qualifies?
  EPFO-registered establishments creating additional jobs, particularly in the manufacturing sector.

• What’s the benefit?
  Employers will receive up to ₹3,000 per month per additional employee for two years. In manufacturing, the incentive will continue into the third and fourth years.

• Hiring requirements

  • For companies with less than 50 employees: must hire at least two additional employees.

  • For companies with 50 or more employees: must hire at least five additional employees.

• Employment sustainability condition
  These new hires must remain employed for at least six continuous months.

More Than a Paycheck

While the numbers are significant — ₹1 lakh crore, 3.5 crore beneficiaries, ₹15,000 incentives — the scheme is also an attempt to solve a deeper issue: job market entry barriers.

For decades, fresh graduates and first-time workers have faced a frustrating cycle — no job without experience, and no experience without a job. PMVBRY’s Part A provides a financial cushion, reducing the risk for both employees and employers in taking that first leap together.

Part B, meanwhile, aims to tilt the scales in favour of job creation. In manufacturing-heavy economies, sustained incentives can be the difference between a factory hiring now or postponing plans for another year.

The scheme is also strategically aligned with the government’s Viksit Bharat vision — the idea that a developed India must rest on the twin pillars of inclusive opportunity and economic resilience.

It’s not just about putting people into jobs, but about keeping them there, encouraging savings, and creating a culture where first-time employment leads to stable, long-term careers.

As PM Modi’s words echoed from the Red Fort to millions of households, for many young Indians, this announcement may have marked the moment they stopped worrying about “Will I get my first job?” and began thinking, “What will my first job be?”