The PM Viksit Bharat Rozgar Yojana (PM-VBRY), launched by the Government of India, is a transformative employment-linked incentive scheme designed to bolster formal job creation and support economic growth. Effective from August 1, 2025, and running until July 31, 2027, the scheme aims to generate over 3.5 crore jobs, with a special focus on first-time workers and the manufacturing sector. With a substantial budget of ₹99,446 crore, PM-VBRY replaces the earlier Employment Linked Incentive (ELI) Scheme and aligns with the broader vision of Viksit Bharat (Developed India) by 2047. This article delves into the eligibility criteria, benefits, key features, and the potential impact of PM-VBRY on India’s workforce and economy.
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Overview of PM Viksit Bharat Rozgar Yojana
The PM-VBRY is a flagship initiative under the Ministry of Labour and Employment, implemented in collaboration with the Employees’ Provident Fund Organisation (EPFO). It is structured to incentivize both employees and employers, fostering inclusive and sustainable employment. The scheme is divided into two parts:
- Part A: Financial incentives for first-time employees entering the formal workforce.
- Part B: Support for employers creating additional jobs.
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| PM Viksit Bharat Rozgar Yojana |
The program targets 1.92 crore first-time workers while encouraging employers to expand their workforce, particularly in the manufacturing sector, which is critical for reducing India’s reliance on service-based employment and boosting industrial growth. By promoting formal employment, PM-VBRY also aims to enhance social security and financial inclusion, aligning with the government’s long-term economic goals.
Employment Linked Incentive Eli Scheme
PM Viksit Bharat Rozgar Yojana Highlights
| Scheme | PM Viksit Bharat Rozgar Yojana |
|---|---|
| Launch Date | August 1, 2025 |
| Duration | August 1, 2025 – July 31, 2027 |
| Objective | Create 3.5 crore jobs, including 1.92 crore for first-time workers |
| Budget | ₹99,446 crore |
| Implementing Authority | Ministry of Labour and Employment, in collaboration with EPFO |
| Parts of the Scheme |
Part A: Incentives for first-time employees Part B: Incentives for employers |
| Employee Benefits | Up to ₹15,000 (one-month EPF wage) in two installments via DBT Financial literacy program mandatory for 2nd installment EPF social security benefits |
| Registration | Starts August 1, 2025, via epfindia.gov.in |
| Category | Central Govt Scheme |
| Year | 2025 |
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Objectives of PM-VBRY
The primary objectives of PM-VBRY are multifaceted, addressing both immediate employment needs and long-term economic aspirations:
- Boost Formal Employment: The scheme incentivizes the creation of formal jobs, ensuring workers benefit from social security measures like EPF contributions.
- Support First-Time Workers: It provides financial assistance to individuals entering the workforce for the first time, easing their transition into professional life.
- Encourage Employer Hiring: By offering monetary rewards, the scheme motivates businesses, especially in manufacturing, to hire more employees.
- Promote Financial Literacy: A unique feature of PM-VBRY is its emphasis on financial discipline, requiring employees to complete a financial literacy program to access full benefits.
- Drive Economic Growth: By focusing on job-led development, the scheme aims to strengthen key sectors like manufacturing, contributing to India’s GDP and reducing unemployment.
Eligibility Criteria
For Employees (Part A)
To qualify for the incentives under PM-VBRY, employees must meet the following criteria:
- EPFO Registration: Must be first-time workers registered with the EPFO.
- Salary Limit: Monthly gross wage must be ₹1 lakh or less.
- New Employment: Employees must join an EPFO-registered establishment between August 1, 2025, and July 31, 2027.
- Non-EPFO Membership: Must not have been a member of EPFO or an exempted trust before August 1, 2025.
- Continuous Employment: Employees must remain employed in the same establishment for at least 6 months to receive the first incentive installment and 12 months (along with completing a financial literacy program) for the second.
- EPF Contribution: EPF contributions must be received from August 2025 or later.
For Employers (Part B)
Employers can claim incentives by meeting these conditions:
- Minimum Hiring: Small firms (less than 50 employees) must hire at least 2 new employees, while larger firms (50 or more employees) must hire at least 5 new employees.
- Salary Range: Incentives apply to new hires with salaries up to ₹1 lakh per month.
- EPFO Registration: The establishment must be registered with EPFO, and employers must submit timely Electronic Challan-cum-Return (ECR) filings.
- Documentation: Employers need to provide details like PAN, GSTIN, and ensure PAN-linked bank accounts for incentive disbursal.
Benefits of PM-VBRY
For Employees
First-time employees stand to gain significantly from PM-VBRY:
- Financial Incentive: Eligible employees receive a one-month EPF wage, up to ₹15,000, disbursed in two installments:
- First Installment: Paid after 6 months of continuous service, credited via Direct Benefit Transfer (DBT) using the Aadhaar Bridge Payment System (ABPS).
- Second Installment: Paid after 12 months of service and completion of a mandatory financial literacy program. A portion of this installment is deposited into a savings instrument to encourage long-term savings.
- Social Security: Registration with EPFO ensures access to provident fund benefits, enhancing financial security.
- Financial Literacy: The mandatory financial literacy program equips employees with skills to manage finances, fostering financial discipline.
For Employers
Employers hiring additional staff are incentivized as follows:
Monthly Incentives: Based on the employee’s salary slab:
- Up to ₹10,000/month: 10% of salary or a maximum of ₹1,000/month.
- ₹10,001 to ₹20,000/month: Up to ₹2,000/month.
- Above ₹20,000/month: Up to ₹3,000/month.
Transparent Payments: Incentives are credited directly to PAN-linked bank accounts, ensuring transparency and efficiency.
Key Features of PM-VBRY
- Massive Job Creation Target: The scheme aims to create 3.5 crore jobs, including 1.92 crore for first-time workers, within two years (2025–2027).
- Focus on Manufacturing: By offering extended incentives, PM-VBRY prioritizes the manufacturing sector, which currently accounts for only 15–17% of employment in India, as per the Economic Survey 2023–24.
- Financial Inclusion: The linkage with EPFO and the financial literacy requirement promotes savings and formal employment.
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| Image by Twiiter |
- Digital Integration: Payments are processed through DBT and ABPS for employees and PAN-linked accounts for employers, ensuring transparency and reducing leakages.
- Two-Part Structure: The scheme’s dual focus on employees and employers creates a holistic approach to job creation.
- Alignment with Viksit Bharat: PM-VBRY is a cornerstone of the government’s vision to transform India into a developed nation by 2047, emphasizing employment-led growth.
Implementation and Registration
The PM-VBRY is implemented by the Ministry of Labour and Employment in collaboration with EPFO. Key implementation details include:
- Registration Start Date: Employer and employee registrations begin on August 1, 2025, via the official EPFO website.
- Awareness Camps: Initiatives like Nidhi Aapke Nikat 2.0 Camps (e.g., scheduled for July 28, 2025) will help spread awareness and assist with eligibility checks.
- Documentation for Employers: Employers must provide PAN, GSTIN, and timely ECR filings. An e-signature verification is required during registration.
- Employee Verification: Employees must have an Aadhaar-linked bank account for DBT and ensure EPF contributions are active.
Impact on India’s Job Market
The PM Viksit Bharat Rozgar Yojana (PM-VBRY) is set to transform India’s job market significantly. It will encourage more workers to join the formal sector by promoting EPFO registration, helping reduce the challenges of India’s large informal workforce. The scheme boosts the manufacturing sector with extended incentives, supporting initiatives like Make in India and increasing its role in employment and economic growth.
It empowers India’s young population by creating job opportunities for first-time workers in sectors like MSMEs, manufacturing, services, and technology. By generating 3.5 crore jobs, PM-VBRY will drive consumer spending, industrial growth, and economic recovery after the COVID-19 disruptions. Additionally, its financial literacy program helps young workers manage their earnings better, ensuring long-term financial stability.
Challenges and Considerations
The PM Viksit Bharat Rozgar Yojana (PM-VBRY) is a promising scheme, but it faces some challenges. Ensuring timely registration and smooth disbursal of incentives is crucial for its success. Raising awareness about the scheme, especially among employees and employers in rural and semi-urban areas, is essential to reach all eligible participants. Strong monitoring is needed to prevent misuse of incentives and ensure employers submit accurate Electronic Challan-cum-Return (ECR) filings. While the scheme prioritizes manufacturing, it must also support sectors like services and technology to ensure balanced and inclusive growth across industries.
Conclusion
The PM Viksit Bharat Rozgar Yojana (PM-VBRY) is a landmark step toward addressing unemployment and fostering economic growth in India. By incentivizing first-time workers with up to ₹15,000 and supporting employers with monthly incentives, the scheme creates a win-win scenario for both stakeholders. Its focus on formal employment, manufacturing, and financial literacy aligns with the vision of a Viksit Bharat by 2047. As the scheme rolls out on August 1, 2025, it holds the potential to transform India’s job market, empower its youth, and drive sustainable economic progress. For more details, stakeholders can visit the official EPFO website or participate in awareness camps like Nidhi Aapke Nikat.
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(FAQs) PM Viksit Bharat Rozgar Yojana (PM-VBRY)
Q. What is the PM Viksit Bharat Rozgar Yojana (PM-VBRY)?
The PM Viksit Bharat Rozgar Yojana (PM-VBRY) is a flagship employment-linked incentive scheme launched by the Government of India to create over 3.5 crore jobs, including 1.92 crore for first-time workers. Running from August 1, 2025, to July 31, 2027, with a budget of ₹99,446 crore, it promotes formal employment, supports the manufacturing sector, and aligns with the Viksit Bharat vision for a developed India by 2047.
Q. Who is eligible to participate in PM-VBRY?
Employees eligible for PM-VBRY are first-time workers registered with EPFO, earning a monthly gross wage of ₹1 lakh or less, and who were not EPFO members before August 1, 2025. Employers must be EPFO-registered establishments hiring at least 2 new employees (for small firms with less than 50 employees) or 5 new employees (for larger firms), with new hires earning up to ₹1 lakh/month.
Q. What benefits do employees receive under PM-VBRY?
First-time employees receive a one-month EPF wage, up to ₹15,000, disbursed in two installments via Direct Benefit Transfer (DBT). The first installment is paid after 6 months of continuous employment, and the second after 12 months, provided they complete a mandatory financial literacy program. Employees also gain access to EPF social security benefits, enhancing their financial stability.
Q. What incentives are available for employers?
Employers receive monthly incentives based on the salary of new hires: up to ₹1,000/month for salaries up to ₹10,000, ₹2,000/month for salaries between ₹10,001–₹20,000, and ₹3,000/month for salaries above ₹20,000. These incentives are provided for 2 years across all sectors, with an extension to 4 years for manufacturing sector employers to encourage sustained job creation.
Q. When does the PM-VBRY scheme start, and how long will it run?
The PM-VBRY scheme begins on August 1, 2025, and will continue until July 31, 2027, spanning two years. During this period, it aims to significantly boost formal employment and support India’s economic growth through job creation.
Q. How can employees and employers register for PM-VBRY?
Registration for PM-VBRY opens on August 1, 2025, through the official EPFO website (pmvbry.epfindia.gov.in). Employees need an Aadhaar-linked bank account for DBT payments, while employers must provide PAN, GSTIN, and submit timely Electronic Challan-cum-Return (ECR) filings to qualify for incentives.
Q. What is the financial literacy program, and why is it mandatory?
The financial literacy program is a training module designed to teach first-time workers essential financial management skills. It is mandatory for employees to complete this program to receive the second installment of the ₹15,000 incentive, ensuring they develop long-term financial discipline and make informed financial decisions.
Q. How are incentives disbursed under PM-VBRY?
Employee incentives are disbursed via Direct Benefit Transfer (DBT) using the Aadhaar Bridge Payment System (ABPS), ensuring secure and transparent payments. Employer incentives are credited directly to PAN-linked bank accounts, streamlining the process and minimizing discrepancies.
Q. Which sectors are prioritized under PM-VBRY?
PM-VBRY prioritizes the manufacturing sector by offering extended incentives for up to 4 years, aligning with initiatives like Make in India. However, it also supports job creation across all sectors, including MSMEs, services, and technology, to ensure inclusive economic growth.