The Government’s Employment Linked Incentive Scheme, recently approved by the Union Cabinet, will come into effect from August 1.
With a significant outlay of ₹99,446 crore, PM Viksit Bharat Rozgar Yojana (PM-VBRY) is expected to generate over 3.5 crore jobs across sectors in the next two years. Out of these, 1.92 crore beneficiaries are projected to be first-time entrants into the formal workforce. The scheme will be applicable to all eligible jobs created between August 1, 2025, and July 31, 2027.
The PM-VBRY is structured in two parts. Part A focuses on first-time employees registered with the Employees’ Provident Fund Organisation (EPFO). These individuals, earning up to ₹1 lakh per month, will receive EPF-linked incentives up to ₹15,000 in two installments – after six and twelve months of continuous service. The second installment will be released only after successful completion of a financial literacy programme. To promote saving habits, part of the benefit will be locked in a fixed deposit or savings instrument, to be withdrawn later.
Part B of the scheme targets employers across sectors, especially manufacturing, by offering incentives for creating new jobs. Employers registered with EPFO will be eligible for financial support of up to ₹3,000 per new employee per month for a period of two years, with an extended benefit up to four years for those in manufacturing. To qualify, establishments with fewer than 50 employees must hire at least two new workers, while those with 50 or more employees must hire at least five, with sustained employment for a minimum of six months.
The incentive amount will vary based on the employee’s EPF wage slab – ranging from ₹1,000 to ₹3,000 per month. Direct Benefit Transfer (DBT) via the Aadhaar Bridge Payment System will be used for transferring funds to employees, while employers will receive payments directly into their PAN-linked accounts.