Pradhan Mantri Rojgar Protsahan Yojana


In recent times Narendra Modi Ji government has taken quite a lot of initiatives to boost up the employment in India. As the nation terribly suffers from high unemployment rate, the government has been keen to encourage employment generation in various ways. After launching the Stand up India Scheme successfully, now the central government has started another employment generation scheme for the unemployed people namely Pradhan Mantri Rojgar Protsahan Yojana i.e. PMRPY. It is launched by the central government in 2016-17 Budgets.

About PMRPY:

  • PMRPY was launched in Lok Sabha on 1st August 2016. The information regarding the scheme was announced by Shri Bandaru Dattatreya, the Minister of  State for Labour and Employment.
  • The Pradhan Mantri Rojgar Protsahan Yojana(PMRPY) Plan Scheme has been designed to incentivise employers for generation of new employment, where Government of India will be paying the 8.33% EPS contribution of the employer for the new employment.
  • People who are working 240 days in a year will be eligible to register under this scheme.
  • This scheme has a dual benefit, where, on the one hand, the employer is incentivised for increasing the employment base of workers in the establishment, and on the other hand, a large number of workers will find jobs in such establishments.
  • A direct benefit is that these workers will have access to social security benefits of the organized sector.

Pradhan Mantri Rojgar Protsahan Yojana

Key features of the Scheme:

  • The scheme is to create more employment opportunities for the unemployed people in the country.
  • The scheme is designed to provide some employment facilities to the newly employed people.

Budget allocation:

The Central government has allocated Rs. 1000 Crore for this scheme.

Objectives of the scheme:

  • The main objective of the scheme is to enhance and encourage the employment in the nation.
  • The scheme does not create employment opportunity directly but of course it accelerates the employers to create more employment opportunities for the people.
  • In this scheme the government will provide incentives to the employers so that they recruit more people in their departments and get rid of high unemployment rates.


As of now more than 3 lakh establishments are covered under this scheme in which nearly 20 workers per establishment are expecting to be hired.

Employee facility:

  • As per the expectation from the scheme, this will also balance the regulation in the labour market. However most of firms might get disturbed about it as it will lead to regularize their books of their companies.
  • The scheme is no doubt paying full benefits to the employers.
  • The main aim of the scheme is to encourage the employers to generate more vacancies in their firms.
  • The scheme also allows the employers to reimburse the money if not paid by the government on time. The scheme is eligible for the new employees who are getting nominal wage of up to Rs. 15,000 per month.