PM Modi to Disburse ₹2,400 Crore Employment Incentives

Prime Minister Narendra Modi will today, June 19, 2026, disburse ₹2,400 crore worth of incentives under the Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY), marking one of the largest employment-linked payouts under the scheme so far.

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Around 1.5 million beneficiaries, including first-time employees and employers, are expected to receive direct financial support through the Direct Benefit Transfer (DBT) system.

The initiative is aimed at accelerating formal job creation and encouraging greater participation of young workers in the organised economy.

Incentives for Employees and Hiring Support for Employers

The scheme provides dual benefits. First-time employees entering the formal workforce are eligible for a wage-linked incentive of up to ₹15,000, which is disbursed in two instalments upon meeting employment continuity conditions.

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On the other side, employers receive financial support of up to ₹3,000 per month per additional employee, provided the hiring is sustained and meets eligibility criteria.

The incentives are routed through the Employees’ Provident Fund Organisation (EPFO), ensuring direct credit into bank accounts and improved transparency in delivery.

Government Push for Formalisation of Employment

PM-VBRY is part of a broader policy effort to expand formal employment in India and reduce dependency on informal jobs. The scheme is designed to lower the cost of hiring for businesses while simultaneously offering income support to young job entrants.

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According to government estimates, the programme is expected to significantly expand the formal workforce base and generate large-scale employment opportunities over time, particularly in manufacturing, services, and emerging sectors.

Interaction with Beneficiaries and Policy Significance

Ahead of the disbursement event, the Prime Minister is expected to interact with selected beneficiaries, including both employees and employers, to understand the ground-level impact.

The initiative is also being seen as a key pillar of the government’s long-term “Viksit Bharat” vision, which focuses on job creation, workforce formalisation, and enhanced social security coverage.

Economists note that such employment-linked incentive programmes are increasingly being used to stimulate hiring momentum and improve youth participation in the formal economy, especially at a time when quality job creation remains a central policy focus.

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