PM Viksit Bharat Rozgar Yojana
The Government of India has introduced the PM Viksit Bharat Rozgar Yojana (PM-VBRY), a major employment-linked incentive scheme starting from 1 August 2025. The scheme aims to generate over 3.5 crore new jobs in two years. It focuses on inclusive and sustainable employment, especially in the manufacturing sector. With a budget of Rs 99,446 crore, the scheme targets first-time workers and supports employers to boost job creation.
Overview of PM Viksit Bharat Rozgar Yojana
PM-VBRY is designed to accelerate economic growth through job-led development. It incentivises both employees and employers to create and sustain employment. The scheme runs from August 2025 to July 2027. It is divided into two parts – Part A for first-time employees and Part B for employers generating additional jobs.
Part A – Incentives for First-Time Employees
Part A targets individuals entering the workforce for the first time and registered with the Employees’ Provident Fund Organisation (EPFO). Eligible employees with salaries up to Rs 1 lakh will receive an incentive equal to one month’s EPF wage, paid in two instalments. The first instalment is after six months of employment, and the second after 12 months plus completion of a financial literacy programme. A portion of this incentive is locked in a savings instrument to encourage saving habits.
Part B – Support for Employers
Part B encourages employers to create additional jobs, with a focus on manufacturing. Employers registered with EPFO must hire at least two new employees if they have fewer than 50 workers, or five if they have 50 or more. Incentives are paid monthly for two years per additional employee earning up to Rs 1 lakh. Manufacturing sector employers receive extended benefits for up to four years. The incentive varies by salary slab – Rs 1,000 for wages up to Rs 10,000, Rs 2,000 for Rs 10,001 to Rs 20,000, and Rs 3,000 for wages above Rs 20,000.
Payment and Implementation Mechanism
Payments to first-time employees under Part A are made via Direct Benefit Transfer (DBT) using the Aadhaar Bridge Payment System (ABPS). Employer incentives under Part B are credited directly to their PAN-linked bank accounts. This ensures transparency and timely disbursal of funds.
Impact on Employment and Economy
PM-VBRY targets 1.92 crore first-time workers, promoting workforce inclusion. By incentivising job creation, it supports economic recovery and growth. The focus on manufacturing aims to strengthen a key sector and encourage formal employment. The scheme also promotes financial literacy and savings among new employees.
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