On July 1, the Union Cabinet approved a massive ₹1 lakh crore package to kickstart job creation in India. This move is part of the government’s plan to make India a global hub for manufacturing while boosting youth employment. Over the next two years, the scheme aims to create more than 3.5 crore jobs, with a special focus on the manufacturing sector.
First-Time Workers Get Paid to Work
Here’s the exciting part — if you’re a first-time employee, this scheme will reward you.
You’ll get up to ₹15,000, in two easy installments. This applies to anyone entering the workforce for the first time and earning up to ₹1 lakh per month. The first ₹7,500 comes after 6 months on the job. The second half follows after 12 months — but there’s a twist. You must also complete a basic financial literacy course. A portion of this incentive will be saved in a fixed deposit account to build your savings habit.
This part of the scheme, known as Part A, is expected to benefit around 1.92 crore first-time workers.
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Employers Win Too
Part B of the employment linked incentive scheme is for employers. If a company adds new staff and keeps them on the payroll for at least 6 months, the government will pay up to ₹3,000 per new employee per month — for two years.
If the company is in the manufacturing sector, these benefits will continue for another two years.
But there’s a condition:
- Small firms (less than 50 staff) must hire at least 2 new employees
- Bigger firms must hire 5 or more
Employers must be registered with EPFO to get these benefits.
When Does It Start?
The scheme kicks in from August 1, 2025 and will run until July 31, 2027. The plan is part of the Union Budget 2024-25, under a larger ₹2 lakh crore package that also includes skill development and entrepreneurship schemes.
It’s a bold move to help India’s 4.1 crore youth find meaningful employment and boost industrial growth at the same time.
Why It Matters
This is not just about handing out money. It’s about creating stable, formal jobs in a country where informal work dominates. The push for financial literacy and long-term savings adds another layer of social security.
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