Giving information on Friday, the Ministry of Labor said that the incentive scheme ‘Pradhan Mantri Development India Employment Scheme’ will be applicable from August 1, 2025. The scheme was approved by the Union Cabinet chaired by Prime Minister Narendra Modi. The ministry said in a statement that the objective of this scheme is to encourage employment generation in the country. The target of ‘Pradhan Mantri Vikas Bharat Employment Scheme’ (PMVBRY), with a total outlay of Rs 99,446 crore, is to encourage the creation of more than 3.5 crore employment in two years. Of these, 1.92 crore beneficiaries will join the workforce for the first time. The benefit of this scheme will be applicable to jobs to be created between August 1, 2025 to July 31, 2027.
What is the purpose of this scheme
According to the statement, the incentive scheme related to employment will be implemented from August 1, 2025 as the Pradhan Mantri Developed India Employment Scheme (PM-VBRY). The name is in line with the overall objectives of the scheme towards developing India initiative and reflects the government’s commitment to create inclusive and environmentally friendly employment opportunities in the country. The scheme, which encourages employers for new employment generation, aim is to provide special attention to the manufacturing sector and provide benefits for new employment creation in various fields. This is an important part of India’s strategy to speed up economic growth through employment-based development.
How much scheme will be found
There are two parts of this scheme. Part A focuses on those investing for the first time while Part B is focused on employers. Keeping in mind the employees who first registered for the first time in the Employees Provident Fund Organization (EPFO), EPF contribution of up to Rs 15,000 will be available in two installments under Part A. Employees with salary up to one lakh rupees will be eligible. The first installment will be payable after six months of service, while the second installment will be payable after 12 months of service and the employee after completing the financial literacy program.
These instructions given to the employer
To promote the habit of savings, a portion of this incentive amount will be kept in the savings or deposit account for a certain period and it can be withdrawn later by the employee. This part will include additional employment creation in all areas, in which special attention will be paid to the manufacturing sector. Employers will receive incentives for employees with salary up to one lakh rupees. The government will give encouragement of up to Rs 3000 per month for every additional employee for at least six months to the employers for at least six months. For the manufacturing sector, the incentive amount will also be extended for the third and fourth year.