PM Modi was addressing the nation from the ramparts of the Red Fort on the 79th Independence Day
Prime Minister Narendra Modi on Friday announced a "Pradhan Mantri Viksit Bharat Rozgar Yojana" and said those getting the first job in the private sector will get Rs 15,000 from the Centre.
Delivering his address to the nation from the ramparts of the Red Fort on the 79th Independence Day, PM Modi said the Rs 1 lakh crore scheme will come into effect immediately. He said the scheme will benefit more than 3.5 crore people.
"Today is August 15, and we are launching a Rs 1 lakh crore scheme for the youth of this country. It is good news for you that PM Viksit Bharat Rozgar Yojana is being rolled out from Today," he said.
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The Ministry of Labour & Employment last month said the employment-linked incentive (ELI) scheme was approved by the Union Cabinet chaired by PM Modi.
In a statement on July 25, it said the PM Viksit Bharat Rozgar Yojana (PMVBRY) aims to incentivise the creation of more than 3.5 crore jobs over two years. Of these, 1.92 crore beneficiaries will be first timers, entering the workforce.
"The name is in alignment with the scheme's overall objectives towards the Viksit Bharat initiative and reflects the Government's commitment to generating inclusive and sustainable employment opportunities in the country," the Ministry said.
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 the Employees' Provident Fund Organisation (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. The 1st instalment will be payable after six 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a portion of the incentive will be kept in a savings instrument or deposit account for a fixed period and can be withdrawn by the employee at a later date," the Ministry said.
All payments to the first-time employees will be made through the DBT (Direct Benefit Transfer) mode using the Aadhar Bridge Payment System (ABPS).
Part B: Support To Employers
Part B will cover the generation of additional employment in all sectors, with a special focus on the manufacturing sector. The employers will get incentives with respect to employees with salaries up to Rs 1 lakh.
The Centre will incentivise employers, up to Rs 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 Ministry said.
Payments to the employers will be made directly into their PAN-linked accounts.
