The Scheme
To achieve the vision of Viksit Bharat@2047, the Government of India in the Budget 2024 – 2025 announced the Scheme of ‘Employment Linked Incentives’ as a part of the “Prime Minister’s Package for Employment and Skilling”.
The scheme focuses on generating employment, enhancing employability and promoting formalization of the workforce. The scheme consists of two parts, part A incentivizes the youth entering the workforce for the first time and part B incentivizes the employers for generating & sustaining employment.
Incentives for First-Time Employees
If you’re entering the formal workforce and newly registered with EPFO, the Government of India will support you with a direct incentive of upto Rs. 15,000, paid in two parts
Any employee
- with date of joining in an establishment between 01.08.2025 and 31.07.2027 (both dates inclusive) and;
- who was not a contributing member of Employees Provident Fund either with EPFO or Exempted Trust prior to 01.08.2025 and
- their Contribution is received in EPFO or exempted trust for the first time for the wage month August 2025 or thereafter
Support for First-Time Employees:
- First-time employees joining an establishment covered under EPFO with a gross wage upto Rs. 1,00,000 per month
- Benefit equivalent to one month wages limited to a maximum of Rs.15000 paid in two installments.
- First installment is paid to the Aadhar seeded bank account of the employee directly on completion of 6 months of service
- The employee needs to complete a financial literacy course as prescribed by EPFO
- After 12 months of service, the second installment is transferred to a savings scheme to be paid to the member at a later date.
Support to Establishments with Focus on Manufacturing:
This component of the scheme is designed to boost employment generation, with a special emphasis on the manufacturing sector. It is an establishment-focused initiative that incentivises the creation of sustained employment across all sectors by providing benefits to eligible establishments for a period of two years. The incentive period for the manufacturing sector is additional 2 years, i.e a total of 4 years.
Pradhan Mantri Viksit Bharat Rozgar Yojana