Government of India to provide Rs 15,000 to young individuals securing their initial private employment, as announced by Prime Minister Modi

The Union Cabinet has recently given its approval to the Employment Linked Incentive (ELI) scheme, which will be implemented through the Prime Minister's Viksit Bharat Rozgar Yojana (PM-VBRY). This scheme, first announced by Prime Minister Narendra Modi during his Independence Day address at the Red Fort last year, is aimed at boosting youth employment in the private sector.

The PM-VBRY scheme, with a total budget of Rs 1 trillion, now has two components: Part A and Part B. Part A is designed to provide support to first-time employees, while Part B offers incentives to EPFO-registered companies hiring additional employees.

Under Part A of the PM-VBRY scheme, first-time employees earning up to Rs 1 lakh per month will receive one month's Employees' Provident Fund (EPF) wage, up to Rs 15,000, in two instalments. The first instalment is disbursed after six months of service, and the second is disbursed after 12 months and the completion of a financial literacy program.

Part A of the PM-VBRY scheme is expected to benefit 35 million young people nationwide. Companies hiring fresh talent will also be eligible for assistance under the PM-VBRY initiative.

Part B of the PM-VBRY scheme provides 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. Larger firms with 50 or more staff must add at least five workers to qualify for incentives, while smaller employers with fewer than 50 employees must add at least two workers.

The incentives under Part B of the PM-VBRY scheme are extended to the manufacturing sector for an additional two years. Benefits under the PM-VBRY will apply to jobs created between August 1, 2025, and July 31, 2027.

The ELI scheme was approved by the Union Cabinet on July 1, 2025, as part of a broader package to promote skilling and job creation. The PM-VBRY plan was first announced in the Union Budget last year by Finance Minister Nirmala Sitharaman.

In conclusion, the Employment Linked Incentive (ELI) scheme, a part of the PM-VBRY, aims to provide government support of Rs 15,000 to young people securing their first private-sector job, while also incentivising companies to hire more young people. This initiative is expected to significantly boost youth employment in the private sector.