GS3 – Economy
Overview & Launch
- Announced by Prime Minister Narendra Modi in his Independence Day address on 15 August 2025.
- Designed as a flagship employment-generation scheme aligned with the Viksit Bharat vision.
Scheme Timelines & Budget
| Feature | Details |
| Launch Date | 1 August 2025 |
| End Date | 31 July 2027 |
| Outlay | ₹99,446 crore (~₹1 lakh crore) |
| Employment Target | 3.5 crore new jobs; ~1.92 crore first-time job seekers |
Two-Part Incentive Structure
Part A – For First-Time Employees
- Eligibility: New private-sector employees registered with EPFO earning ≤ ₹1 lakh/month. Must be joining after 1 August 2025 (not EPFO member before).
- Incentive: One month’s EPF wage (up to ₹15,000), paid in two instalments:
- First instalment (≈ ₹7,500): After 6 months of continuous employment.
- Second instalment: After 12 months, upon completion of a financial literacy program.
- Additional Condition: Part of the incentive is locked in a savings/fixed deposit instrument to encourage long-term savings.
Part B – For Employers
- Objective: Motivate firms to create fresh formal jobs, especially in manufacturing.
- Incentive:
- Up to ₹3,000/month per additional employee for 2 years (all sectors).
- Extended to 4 years for the manufacturing sector.
- Hiring Norms:
- Firms with <50 employees must hire at least 2 more.
- Firms with ≥50 employees must hire at least 5 more.
- New hires must be retained for a minimum of 6 months.
- Payment Mode: Credited via PAN-linked bank accounts.
Payment Mechanisms
| Stakeholder | Channel |
| Employees | Direct Benefit Transfer (DBT) via Aadhaar Bridge Payment System (ABPS) |
| Employers | Direct transfer to PAN-linked bank accounts |
Objectives & Significance
- Formalisation of jobs: Extend social security and EPF coverage to new entrants.
- Employment generation: Create 3.5 crore formal jobs in 2 years.
- Youth empowerment: Encourage private-sector entry with financial incentives.
Industry boost: Encourage hiring, especially in manufacturing.