PRADHAN MANTRI VIKSIT BHARAT ROZGAR YOJANA​

Why in News?

PM Modi Announces Pradhan Mantri Viksit Bharat Rozgar Yojana to Boost Youth Employment

Key Features of the Scheme:

1. Part A – Support to First-Time Employees:

• Target group: First-time employees registered with EPFO.
• Benefit: One-month EPF wage up to ₹15,000, given in two instalments.
• Eligibility: Employees with salaries up to ₹1 lakh.
• First instalment: Payable after 6 months of service.
• Second instalment: Payable after 12 months of service and completion of a financial literacy programme.
• Savings habit: A portion of the incentive will be kept in a deposit account/savings instrument for a fixed period, withdrawable later.
• Coverage: Expected to benefit around 92 crore first-time employees.

1. Part B – Incentives for Employers:

• Target group: Employers across all sectors, with special focus on manufacturing.
• Eligibility: Incentives for hiring new employees with salaries up to ₹1 lakh.
• Incentive amount: Up to ₹3,000 per month per new employee.
• Duration:
  – 2 years for all sectors (if the employee stays for at least 6 months).
  – 4 years for the manufacturing sector (extended to 3rd and 4th years).
• Objective: To encourage creation of new jobs and boost employment.
• Expected impact: Around 60 crore new employment opportunities.

Incentive Payment Mechanism: 

• Part A (Employees):
  Payments made through Direct Benefit Transfer (DBT).
  Uses Aadhar Bridge Payment System (ABPS) for secure transfer.
• Part B (Employers):
  Payments made directly into PAN-linked bank accounts of employers.

Objectives of the Scheme:

• Catalyse job creation in all sectors, especially manufacturing.
• Incentivize youth to join the workforce for the first time.
• Promote formalization of work force by bringing crores under social security coverage.