Pradhan Mantri Package 2026: 5 Employment and Skill Development Schemes for Youth

Pradhan Mantri Package is the umbrella program the central government announced in the Union Budget 2024-25 to boost employment and skill development. It brings together five schemes and initiatives with a central outlay of ₹2 lakh crore, with the aim of giving employment, skilling and other opportunities to 4.1 crore youth over a five-year period.

Finance Minister Nirmala Sitaraman announced the package in the first full budget of the newly elected government. Since then the individual schemes have been rolled out and some have been renamed and updated. As of 2026, the package continues to run through its five components, and the details are given below.

Five Schemes Under Pradhan Mantri Package

The first three schemes are employment-linked incentives based on enrolment in the EPFO. They focus on first-time employees and on supporting both employees and employers. These three schemes are now implemented together under the name Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), which came into effect from 1 August 2025 with an outlay of ₹99,446 crore and a target of creating more than 3.5 crore jobs over two years.

1. Scheme A: First Timers
   This scheme gives one month's wage to people newly entering the workforce in all formal sectors. First-time employees registered in the EPFO get a direct benefit transfer of up to ₹15,000 in three installments. The scheme is expected to benefit 2.1 crore youth over two years, and the employee must complete a compulsory online financial literacy course before claiming the second installment.
2. Scheme B: Job Creation in Manufacturing
   This scheme encourages additional hiring of first-time employees in the manufacturing sector. An incentive is given directly to both the employee and the employer against their EPFO contribution in the first four years of employment. It is expected to benefit 30 lakh youth entering employment along with their employers.
3. Scheme C: Support to Employers
   This employer-focused scheme covers additional employment within a salary of ₹1 lakh per month in all sectors. The government reimburses employers up to ₹3,000 per month for two years towards their EPFO contribution for each additional employee. The scheme is expected to encourage additional employment of 50 lakh persons.
4. ITI Upgradation and Skilling
   The fourth scheme is a centrally sponsored skilling program run with state governments and industry. With a total outlay of ₹60,000 crore, it aims to skill 20 lakh youth over five years. To reach this target, 1,000 Industrial Training Institutes (ITIs) are being upgraded in hub and spoke arrangements, and the program has been launched as PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs).
5. PM Internship Scheme
   The fifth scheme provides internship opportunities in 500 top companies to 1 crore youth over five years. Interns get a monthly stipend and a one-time assistance amount. The scheme is run by the Ministry of Corporate Affairs and applications are accepted online at pminternship.mca.gov.in. For full details, see the PM Internship Scheme 2026 guide.

Latest Updates in the Package Schemes

The package schemes have seen several updates since they were announced in 2024. The employment-linked incentive schemes are now part of Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), which the Union Cabinet cleared and brought into effect from 1 August 2025. The scheme guidelines and application details are available on the official portal at pmvbry.labour.gov.in.

PM Internship Scheme has also been updated. From March 2026 the monthly stipend was increased from ₹5,000 to ₹9,000, and the age limit was widened from 21 to 24 years to 18 to 25 years. New internships run for 6 to 9 months, and interns also get a one-time joining grant of ₹6,000. Registration on the official portal is free and applications keep opening in rounds through the year.

For the ITI upgradation scheme, the Union Cabinet approved the National Scheme for Industrial Training Institute (ITI) Upgradation and setting up of five National Centres of Excellence for Skilling. The program was later launched as PM-SETU, with the central share, state share and industry share together making up the ₹60,000 crore outlay.

Eligibility and Application Process

Eligibility for the employment-linked schemes depends on EPFO registration. For Scheme A, first-time employees with a monthly salary below ₹1 lakh are eligible, and the application is done through the EPFO. For Scheme B, employers registered in the EPFO who hire additional first-time employees in manufacturing are covered. For Scheme C, employers who add new employees within a salary of ₹1 lakh per month in any sector can claim the reimbursement.

For PM Internship Scheme, Indian citizens aged 18 to 25 years who are not in full-time employment and not studying full-time can apply. The combined annual family income should be below ₹12 lakh. The application is fully online on the official portal, and candidates can apply to up to three active openings at a time.

For the ITI upgradation scheme, ITIs are selected in collaboration with state governments and industry, and the course content is aligned to the skill needs of industry. New courses are being introduced for emerging needs.

How to Apply for PM Internship Scheme

STEP 1 - Go to the official portal at pminternship.mca.gov.in and click on Login or Register. Enter the mobile number, verify it with OTP, and set a password to create the account.

STEP 2 - Complete the e-KYC using Aadhaar OTP or DigiLocker. This unlocks the full internship details and the Apply button on the portal.

STEP 3 - Fill the profile with personal details and education qualifications, and upload the certificates. Keep the profile complete because incomplete profiles cannot apply.

STEP 4 - Browse the internship listings and filter by state, district, sector or keyword. Apply to the openings that match, keeping in mind the limit of three active applications at one time.

STEP 5 - Track the application on the candidate dashboard. If selected, accept the offer within 14 days, otherwise it lapses on its own.

Documents Required

Keep these documents ready before starting the application for the internship scheme:

• Aadhaar Card - needed for e-KYC and DBT payments.
• Educational certificates - Class 10, Class 12, ITI, diploma or degree as applicable.
• Bank account details - the account must be Aadhaar-seeded for the stipend transfer.

Pradhan Mantri Package PDF

Pradhan Mantri Package continues to support youth employment and skill development through its five schemes. The employment-linked schemes now run under PM Viksit Bharat Rozgar Yojana, the ITI upgradation program runs as PM-SETU, and the internship scheme keeps accepting applications on its official portal. Eligible youth can apply online through the respective official websites.