Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) was officially launched by the Centre on 15 August 2025 with the goal of strengthening India’s formal labour market. This ambitious initiative aims to provide financial incentives to both first-time employees and employers, encouraging job creation and promoting long-term financial security. Operated by the Employees’ Provident Fund Organisation (EPFO), the scheme carries a budget allocation of ₹99,446 crore and targets the creation of over 3.5 crore jobs within the next two years.
Objectives of PM-VBRY
The primary objective of Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) is to formalise employment across the organised sector while motivating employers to expand their workforce. By offering direct cash incentives, the scheme encourages hiring new employees and retaining them for longer durations. Additionally, it seeks to improve financial literacy among workers, helping them understand provident fund benefits and promoting a culture of long-term savings.
The initiative also plays a vital role in strengthening small and medium enterprises (SMEs) by providing monetary support to employers who take steps to hire additional staff, thereby fostering economic growth and employment stability.
Incentives for Employees
Employees who join an EPFO-registered establishment for the first time after 15 August 2025 and earn up to ₹1 lakh per month are eligible under the scheme. Under PM-VBRY, these employees can receive up to ₹15,000 in two instalments.
- The first instalment is paid after six months of continuous employment.
- The second instalment is released after 12 months, contingent on completing a financial literacy module. A portion of this instalment is credited to a designated savings account to encourage future savings and financial discipline.
This structure ensures that employees not only receive immediate financial benefits but are also guided toward long-term financial security and provident fund awareness.
Incentives for Employers
Employers registered with EPFO who hire eligible new staff can receive up to ₹3,000 per month per new employee under Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY).
- The benefit lasts for two years for most sectors, and up to four years for manufacturing companies.
- Companies with fewer than 50 employees must hire at least two additional workers, while companies with 50 or more employees must hire a minimum of five extra workers to qualify.
These measures are designed to ensure that the scheme effectively promotes job creation while supporting smaller businesses that often struggle with recruitment and retention.
Eligibility and Application Process
For employees, registration is simple. They must create a Universal Account Number (UAN) linked to Aadhaar using face authentication via the UMANG app. No separate application is required; eligibility is automatically determined upon first-time EPFO registration.
Employers must obtain an EPFO code through the Shram Suvidha Portal and register on the EPFO employer login portal. Monthly Electronic Challan cum Return (ECR) submissions and provident fund contributions must be completed on time, and new hires should be maintained for at least six months to ensure eligibility for incentives.
Payment and Benefits Delivery
Under PM-VBRY, employee incentives are directly transferred to Aadhaar-linked bank accounts through Direct Benefit Transfer (DBT). Employer incentives are credited every six months to PAN-linked company bank accounts. The scheme effectively links financial benefits to both employment retention and compliance with formal sector regulations, encouraging a culture of regularisation and accountability in workforce management.
Impact and Significance
The launch of Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) marks a significant step toward strengthening India’s formal labour market. By promoting stable employment, incentivising employers, and enhancing financial literacy, the scheme is expected to boost economic growth while supporting workers in securing long-term financial stability.
The scheme also addresses challenges faced by small and medium enterprises in hiring and retaining employees, thereby enhancing the competitiveness of Indian businesses. Integrating financial literacy modules ensures that workers are better prepared for a dynamic economy and develop habits of disciplined savings.
Overall, PM-VBRY reflects a balanced approach to economic development, combining employment generation, financial inclusion, and sustainable workforce management, ultimately contributing to a more robust and formalised Indian labour market.
