Indian govt will give Rs 15,000 to young people getting their first private job: PM Modi

Prime Minister Narendra Modi on Friday announced the launch of the PM Viksit Bharat Rozgar Yojana (PM-VBRY), a Rs 1 lakh crore scheme aimed at boosting youth employment in the private sector.

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Unveiling the program during his Independence Day address at the Red Fort, Modi said young people securing their first private-sector job will receive Rs 15,000 in government support. Companies hiring fresh talent will also be eligible for assistance under the initiative.

“Today, on the auspicious occasion of August 15, we are launching a Rs 1 trillion scheme for the youth of the country. Under this scheme, young people getting their first job in the private sector will get Rs 15,000 as government support. Companies, too, will get support for creating new jobs,” Modi said.

The government expects the scheme to benefit 35 million young people nationwide.

The plan was first announced in the Union Budget last year by Finance Minister Nirmala Sitharaman as part of a broader package to promote skilling and job creation. On July 1, the Union Cabinet approved the Employment Linked Incentive (ELI) scheme, which will be implemented through PM-VBRY. Benefits will apply to jobs created between August 1, 2025, and July 31, 2027.

The scheme has two components:

Part A targets first-time employees: one month’s Employees’ Provident Fund (EPF) wage up to Rs 15,000 will be paid in two instalments to new employees earning up to Rs 1 lakh per month. The first instalment will be disbursed after six months of service, and the second after 12 months and completion of a financial literacy program. 

Part B is directed at employers. The government will provide incentives of up to Rs 3,000 per employee per month for two years to EPFO-registered companies hiring additional employees earning up to Rs 1 lakh, with a special emphasis on the manufacturing sector.

For manufacturers, incentives will be extended into the third and fourth years. To qualify, smaller employers with fewer than 50 employees must add at least two workers, while larger firms with 50 or more staff must add at least five.