Youth getting first job in private sector to get ₹15,000 support: PM Modi

The scheme, earlier known as Employment Linked Incentive (ELI) scheme, was announced in the Union budget last year

Youth landing their first job in the private sector will get government support of ₹15,000, Prime Minister Narendra Modi said in his Independence Day address on Friday as he announced the launch of Prime Minister Viksit Bharat Rozgar Yojana (PM -VBRY).  The scheme, with an outlay of ₹1 trillion, aims to help 35 million youth in the country.

 

Companies too will get government support as they create job opportunities for the youth, the PM said.

 

“Today on the auspicious occasion of August 15, we are going to launch the ₹1 trillion scheme for the youth of the country. The PM-VBRY is being implemented today. Under this scheme, young people getting their first job in the private sector will get ₹15,000 as government support. Companies, too, will get the support for creating new jobs. The scheme is slated to benefit 35 million youth. I congratulate all the young people in the country,” PM Modi said in his address.

 

 

The scheme, erstwhile known as Employment Linked Incentive (ELI) scheme, was announced in the Union budget last year by Finance Minister Nirmala Sitharaman as part of the Prime Minister’s package to facilitate skilling and job creation in the country.

 

On July 1, the Union Cabinet approved the ELI scheme. The benefits of the scheme would be applicable to jobs created between 1st August 2025 and 31st July 2027. 

 

“Good news for the youth of the country! In his address from the ramparts of the Red Fort, the Prime Minister announced the implementation of ‘PM Vikasit Bharat Rojgar Yojana’ from today. This scheme, costing approximately ₹1 trillion will create 35 million jobs in the country. I express my heartfelt gratitude to the Prime Minister for this announcement,” Union Labour Minister Mansukh Mandaviya posted on social media platform X on Friday.

 

The PM-VBRY consists of two parts with Part A focused on first timers and Part B focused on employers.

 

Under part A, one-month EPF wage up to ₹15,000 in two instalments will be given to first-time employees registered with the Employees Provident Fund Organisation (EPFO). Employees with salaries up to ₹1 lakh will be eligible. The 1st instalment will be payable after six months of service and the 2nd 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 of deposit account for a fixed period and can be withdrawn by the employee at a later date. This will benefit around 19.2 million fresh beneficiaries entering the workforce,” the labour ministry had said in a statement earlier.

 

The part B will cover generation of additional employment with salaries up to ₹1 lakh in all sectors, with a special focus on the manufacturing sector. The government will incentivise employers registered with EPFO, up to ₹3000 per month, for two years, for each additional employee with sustained employment for at least six months. For the manufacturing sector, incentives will be extended to the 3rd and 4th years as well.

 

Employers (with less than 50 employees) will have to add at least two additional employees or five additional employees (in case of 50 or more employees) to avail benefits.

 

“In the budget, three ELI schemes were announced. However, the second and third schemes have a lot of overlap, hence they have been condensed as Part B. All other parameters remain the same,” explained an official requesting anonymity.

 

The Prime Minister Internship scheme, another component of the package announced last year, had its first round of pilot run between October and December 2024. With more than 600,000 applications received, 127,000 internship opportunities were posted by 280 top companies covering 745 districts, of which over 82,000 internship offers were made to candidates.

 

In the round II of the internship scheme, till now more than 120,000 internships have been offered with participation from 327 reputed companies.

 

Meanwhile, in May, the Union Cabinet also approved the ₹60,000 crore Industrial Training Institute (ITI) upgradation scheme, with focus on 1,000 government ITIs in hub and spoke arrangement with industry aligned revamped trades.

 

Out of the ₹60,000 crore to be spent under the scheme, Centre would contribute ₹ 30,000 crore, state’s share would be ₹20,000 crore and industry would pitch in ₹ 10,000 crore.