PM Modi announces Pradhan Mantri Viksit Bharat Rozgar Yojana to boost youth employment

New Delhi [India], August 15 (ANI): Marking his 12th Independence Day address from the historic Red Fort, Prime Minister Narendra Modi on Friday announced the Pradhan Mantri Viksit Bharat Rozgar Yojana with an outlay of Rs 1 lakh crore. This transformative scheme aims to support the creation of over 3.5 crore jobs in two years, the Ministry of Labour & Employment said in a press release.
The scheme will provide an incentive of up to Rs 15,000 in two instalments to newly employed youth and up to Rs 3,000 per month per new employee to employers for the creation of new job opportunities.
Targeting first-time employees registered with EPFO, Part A will offer one-month EPF wage up to Rs 15,000 in two instalments. Employees with salaries up to Rs 1 lakh will be eligible for the incentives.
The 1st instalment will be payable after 6 months of service and the 2nd instalment will be payable after 12 months of service and completion of a financial literacy programme by the employee. To encourage the habit of saving, a portion of the incentive will be kept in a savings instrument or a deposit account for a fixed period and can be withdrawn by the employee at a later date.
Part A will benefit around 1.92 crore first-time employees.
Part B will encourage the generation of additional employment in all sectors, with a special focus on the manufacturing sector. The employers will get incentives in respect of new employees with salaries up to Rs 1 lakh. The Government will incentivise employers, up to Rs 3000 per month, for two years, for each additional employment, sustained for at least six months. For the manufacturing sector, incentives will be extended to the 3rd and 4th years as well.
This part is expected to incentivise employers for the creation of additional employment of nearly 2.60 crore persons.
All payments to the First Time Employees under Part A of the Scheme will be made through DBT (Direct Benefit Transfer) mode using Aadhar Bridge Payment System (ABPS). Payments to the Employers under Part B will be made directly into their PAN-linked Accounts.
With the ELI Scheme, the government intends to catalyse job creation in all sectors, particularly in the manufacturing sector, besides incentivising youth joining the workforce for the first time. An important outcome of the Scheme will also be formalisation of the country's workforce by extending social security coverage for crores of young men and women. (ANI)