A high-level stakeholder consultation was held at Gujarat Chamber of Commerce and Industry, Ahmedabad under the chairpersonship of Dr. Mahender Kumar, Joint Secretary, Ministry of Labour & Employment, Government of India. The meeting witnessed active participation from representatives of major industries, the regional teams of the Employees’ Provident Fund Organization (EPFO), the Employees’ State Insurance Corporation (ESIC), Regional Labour Commissioner (Central) and, among other institutional stakeholders. With a total of around 100 participants, the gathering aimed to discuss the strategic implementation of the Pradhan Mantri Viksit Bharat Yojna. The session served as a vital platform to raise awareness, share perspectives, and align stakeholders on a common roadmap to promote employment generation, enhance workforce participation, and strengthen social security frameworks in the State.

The meeting featured comprehensive deliberations from all participating entities. Industries and other stakeholders shared feedback on implementation feasibility and highlighted opportunities for employment generation, especially in the manufacturing sector. The Ministry of Labour & Employment addressed all points of concern, reaffirming its commitment to a technology-enabled, transparent, and inclusive rollout of the scheme through the EPFO.

Pradhan Mantri Viksit Bharat Yojna, approved by the Union Cabinet on 1st July 2025, is a transformative Central Sector initiative aimed at generating over 3.5 crore employment opportunities over a two-year period—from 1st August 2025 to 31st July 2027—with a special focus on the manufacturing sector. Backed by a financial outlay of ₹99,446 crore, the Pradhan Mantri Viksit Bharat Yojna is designed to incentivize both employees and employers through two well-defined components.

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

Part A: Incentive to First Time Employees

Targeting first-time employees registered with EPFO, this part will offer one-month EPF wage up to ₹15,000 in two instalments. Employees with salaries up to ₹1 lakh will be eligible. The first instalment will be payable after 6 months of service and the second 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 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: Support to Employers

This part will cover generation of additional employment in all sectors, with a special focus on the manufacturing sector. The employers will get incentives in respect of employees with salaries up to ₹1 lakh. The Government will incentivize employers, up to ₹3,000 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 third and fourth years as well.

Establishments, which are registered with EPFO, will be required to hire at least two additional employees (for employers with less than 50 employees) or five additional employees (for employers with 50 or more employees), on a sustained basis for at least six months.

The incentive structure will be as under:

*Employees with EPF wages up to Rs. 10,000 will get a proportional incentive

This part is expected to incentivize employers for the creation of additional employment of nearly 2.60 crore persons.

Incentive Payment Mechanism

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 Pradhan Mantri Viksit Bharat Yojna, the government intends to catalyse job creation in all sectors, particularly in the manufacturing sector, besides incentivizing youth joining the workforce for the first time. An important outcome of the scheme will also be the formalization of the country’s workforce by extending social security coverage for crores of young men and women.

Through this dual-benefit structure, Pradhan Mantri Viksit Bharat Yojna aims to formalize employment, provide financial empowerment to first-time employees, and promote long-term economic inclusion. It represents a significant step towards building a future-ready, skilled, and secure workforce across the country.

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