Prelims – Current events of national and international importance | Economic and Social Development
Why in News?
Recently, the Prime Minister announced a scheme with a financial outlay of nearly Rs. 1 lakh crore to boost youth employment.
- Aim – To support the job creation of 3.5 crore jobs in two years.
- Incentive – The scheme will provide Rs. 15,000 in two instalments to newly employed youth.
- Rs. 3,000 per month will be provided to employers for each new job created through the hiring of a new employee.
- Key Features
- Part A – Support to First-Time Employees
- It will provide newly registered EPFO members with one month’s EPF wage.
- Employees with salaries up to Rs 1 lakh will be eligible.
- The 1st instalment will be payable after 6 months of service, and the 2nd instalment will be payable after 12 months of service.
- To encourage the habit of saving, a part of the incentive will be kept in a savings account for a fixed period and can be withdrawn by the employee later.
- Part B – Incentives for Employers
- It will encourage the generation of employment in all sectors and provide incentives in respect of new employees with salaries up to 1 lakh.
- The Government gives employers up to Rs 3000 per month for each new job that lasts at least 6 months, for two years and for the manufacturing sector.
- This support will continue for the 3rd and 4th years.
- Payment mechanism – All payments to the 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.
- Swatantra Bharat to Samriddha Bharat – It is an initiative towards Independent India to Prosperous India.
- Significance – This scheme will fulfil the vision of a developed and self-reliant India by promoting large scale employment, formalization of workforce and financial inclusion of the youth.
- It supports youth entering the workforce and enhances social security by increasing EPFO coverage.
Reference
PIB| PM Viksit Bharat Rozgar Yojana
