New Delhi: During his address on the occasion of 79th Independence Day, Prime Minister Narendra Modi announced the Pradhan Mantri Viksit Bharat Rozgar Yojana with an outlay of ₹1 lakh crore. The scheme aims to support creation over 3.5 crore jobs in two years. The scheme will provide incentive of up to ₹15,000 in two installments to newly employed youth and upto 3000 per month per new employee to employers for creation new job opportunities.
This scheme will have two components majorly:
Part A: Support to First-Time Employees:
Targeting first-time employees registered with EPFO, this Part 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a portion of the incentive will be kept in a savings instrument of deposit account for a fixed period and can be withdrawn by the employee at a later date.
This part of the scheme aims to benefit around 1.92 crore first time employees.
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).
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Part B: Incentives for Employers
This part will encourage 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 incentivize 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 incentivize employers for the creation of additional employment of nearly 2.60 crore persons.
Incentive Payment Mechanism: Payments to the Employers under Part B will be made directly into their PAN-linked Accounts.
With ELI Scheme, the government intends to catalyse job creation in all sectors, particularly in manufacturing sector, besides incentivizing youth joining the workforce for the first time. An important outcome of the Scheme will also be formalization of the country’s workforce by extending social security coverage for crores of young men and women.
