Nashamukt Gram Panchayat Puraskar Yojana 2026
This government initiative offers a one-time incentive of up to ₹15,000 to first-time employees, helping them with Read More... their initial learning phase and financial literacy. Read less
Details
The Ministry of Labour & Employment has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana, a significant initiative to boost employment and formalize the workforce in India. Part A of this scheme is specifically designed to support 'First-Time Employees', making their entry into the formal job sector smoother and more productive.
What Is This Scheme?
Pradhan Mantri Viksit Bharat Rozgar Yojana, specifically Part A, aims to support individuals who are new to the workforce and joining establishments covered under the Employees' Provident Fund Organisation (EPFO). It provides financial assistance to help these new employees get productive, learn new skills, and become financially literate. The scheme aims to create a more dynamic and inclusive labour market, especially for India's youth.
Who Can Benefit From This Scheme?
The primary beneficiaries are 'First-Time Employees'. This means individuals who are new to contributing to the Employees' Provident Fund (EPF) or an exempted trust. The scheme is for those who join an establishment between August 1, 2025, and July 31, 2027, and have a monthly gross salary up to ₹1,00,000.
Why This Scheme Is Important
This scheme plays a crucial role in encouraging formal employment. By providing incentives, it helps new employees overcome their initial learning challenges, enhancing their productivity and long-term employability. It also promotes financial literacy, equipping them with essential skills for managing their earnings and future financial well-being. The ultimate goal is to foster sustained employment generation and contribute to India's economic growth.
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Benefits
Sources and references
Eligibility Criteria
To be considered eligible for the incentive under Part A, an employee must meet the following criteria:
- First-Time EPFO-Registered Employee:
- Must have joined an establishment between August 1, 2025, and July 31, 2027 (inclusive).
- Must not have contributed to EPFO or any exempted trust before August 1, 2025.
- The first contribution must be received in EPFO or an exempted trust for the wage month of August 2025 or later.
- Monthly Salary: The employee's monthly salary, including all allowances, should not exceed ₹1,00,000.
- Minimum Service Period: A minimum of 6 months of continuous employment in the same establishment is required to receive the first installment.
- Financial Literacy: The employee must successfully complete a financial literacy course as prescribed by EPFO.
When Incentives Cease: Incentives will not be provided if the employee:
- Leaves the employment voluntarily or otherwise.
- Passes away.
- The establishment closes down or is wound up.
- Is involved in any misrepresentation or fraud.
How To Apply
There is no direct registration process for employees to avail benefits under Part A of this scheme. Eligible employees will automatically receive the incentive based on the Electronic Challan-cum-Return (ECR) filed by their employer with EPFO. Employers are responsible for ensuring accurate filing of ECRs, which includes details of all contributing employees.
Documents Required
While there's no direct application for employees, having the following documents readily available is crucial:
- Aadhaar Card
- PAN Card
- Aadhaar seeded bank account details
- Any other documents as may be specified by the authorities.
FAQ’s
What does 'First Timer' mean in the context of this scheme?
A 'First Timer' is an employee who has not contributed to the Employees' Provident Fund (EPF) through EPFO or an exempted trust before August 1, 2025. Their first contribution must be made for the wage month of August 2025 or later, and they must have joined an establishment between August 1, 2025, and July 31, 2027.
How is the incentive amount paid to eligible employees?
The incentive is paid directly into the employee's Aadhaar-seeded bank account through Direct Benefit Transfer. It is disbursed in two installments: the first after 6 months of service, and the second after 12 months of service.
What happens if an employee's bank account is not linked with Aadhaar?
If your bank account is not Aadhaar-seeded, the payment of incentives will be paused until you complete the seeding process. However, the incentives will continue to accumulate. Once your account is linked, all pending payments, including any arrears, will be released according to the scheme rules.
Can an employee who has a UAN but never contributed to EPF be considered a 'First Timer'?
Yes, if an employee has a UAN but has never contributed to EPFO or an exempted trust before the scheme's start date, and their first contribution is made during the scheme registration period, they will be considered a 'First Timer'. They can get incentives if they meet all other conditions, like biometric Aadhaar authentication and completing the financial literacy course.
What is the maximum incentive amount an employee can receive?
The incentive provided is equivalent to one month's EPF wage, with a ceiling of ₹15,000.
Is there a specific registration process for employees to get this benefit?
No, employees do not need to go through a registration process. The incentive is automatically provided based on the Electronic Challan-cum-Return (ECR) submitted by their employer to EPFO.
What are the conditions for receiving the second installment of the incentive?
To receive the second installment, the employee must have completed the mandatory Financial Literacy Course and worked for 12 complete months in the same establishment. Additionally, all 12 months of ECRs with contributions must have been filed by the employer.
What is the 'Financial Literacy Course' and where can it be accessed?
The 'Financial Literacy Course' is a required online program covering personal finance, savings, and investments. It is available on the EPFO website.
What is UAN?
UAN stands for Universal Account Number, which is a unique number allotted to an employee by the Employees' Provident Fund Organization (EPFO) for their provident fund account. It needs to be authenticated, for example, through Face Authentication Technology (FAT) on the UMANG App, for eligibility.
What does 'Completed Wage Month' mean for this scheme?
A 'Completed Wage Month' is a full calendar month for which the employer has filed the Electronic Challan-cum-Return (ECR). If an employee joins on or before the 5th day of a month, that month is considered the first completed wage month. If they join after the 5th, the following month counts as the first.
What happens if an employee leaves their job before completing 12 months?
If a 'First Timer' employee leaves their job voluntarily or due to unforeseen circumstances after completing 6 months but before completing 12 months, they will not be eligible for the second installment of the incentive.
Can an employee who previously worked in an exempted establishment be a 'First Timer'?
No, an employee who was previously a contributing member of an Exempted Trust and now joins EPFO, or vice-versa, cannot be considered a 'First Timer' under this scheme.
How is the second installment handled after completion of 12 months?
The second installment is deposited into a designated savings or deposit account. It will be paid to the member later, as per future guidelines from the Ministry of Labour & Employment.
What is Electronic Challan cum Return (ECR)?
ECR stands for Electronic Challan cum Return. It is the online monthly submission of contributions by employers to the EPFO.
Does an employee need Aadhaar authentication to be eligible?
Yes, Aadhaar authentication is mandatory. Only those employees whose UAN is authenticated using Face Authentication Technology (FAT) are eligible for the benefits under Part A.
What happens if an employee joins an establishment after the scheme's registration period ends?
Employees who join an establishment after the scheme registration period (which ends on July 31, 2027) are not eligible for incentive benefits. However, they will still be counted for calculating the net additional employment for the establishment.
In case of the employee's death, will the nominee receive the incentive?
Yes, if an employee was eligible for an installment (either first or second) and passes away before the incentive is credited to their bank account, the nominee will receive the incentive.
What is the purpose of the 'Part A- Support for First-Time Employees' component?
This component of the scheme is designed to assist new employees as they navigate their initial learning phase. It helps them become more productive by offsetting upskilling costs and also provides financial literacy training through the EPFO portal.
Is there any baseline requirement for the establishment to get benefits for their employees?
No, there is no specific baseline requirement for an establishment regarding the incentive provided to employees under Part A.
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