Pradhan Mantri Viksit Bharat Rozgar Yojana
The Centre launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) on 15 August 2025. The scheme aims to boost formal employment by providing financial incentives to both first-time employees and employers. Operated by the Employees’ Provident Fund Organisation (EPFO), the scheme has a budget of ₹99,446 crore and targets the creation of over 3.5 crore jobs in two years.
Objectives of PM-VBRY
The scheme seeks to formalise jobs and increase job creation in the organised sector. It offers direct cash incentives to encourage employers to hire new workers and motivate employees to retain jobs. The initiative also promotes financial literacy and long-term savings among workers.
Incentives for Employees
Employees joining an EPFO-registered establishment for the first time after 15 August 2025 and earning up to ₹1 lakh per month are eligible. They receive up to ₹15,000 in two instalments. The first instalment is paid after six months of employment. The second instalment is given after 12 months, contingent on completing a financial literacy module. A portion of the second instalment is credited to a designated savings account to encourage future savings.
Incentives for Employers
Employers registered with EPFO who hire additional eligible staff can receive up to ₹3,000 per month per new hire. The benefit lasts for two years for most sectors and up to four years for manufacturing companies. To qualify, companies with fewer than 50 employees must hire at least two extra workers, while those with 50 or more employees must hire at least five additional workers.
Eligibility and Application Process
Employees must create a Universal Account Number (UAN) linked to Aadhaar using face authentication via the UMANG app. No separate application is required for employees; eligibility is automatic upon first-time EPFO registration. Employers must obtain an EPFO code through the Shram Suvidha Portal and register on the EPFO employer login portal. They must submit monthly Electronic Challan cum Return (ECR) with provident fund contributions on time and maintain new hires for at least six months.
Payment and Benefits Delivery
Employee incentives are directly transferred to Aadhaar-linked bank accounts via Direct Benefit Transfer (DBT). Employer incentives are credited every six months to PAN-linked company bank accounts. The scheme links financial benefits to employment retention and compliance with formal sector regulations.
Impact and Significance
PM-VBRY aims to strengthen the formal labour market and support small and medium enterprises. It encourages stable employment and financial inclusion. By integrating financial literacy, the scheme prepares workers for a dynamic economy and encourages long-term financial security.
| Related | |
|---|---|
