In a major push to employment generation and formal workforce participation, Prime Minister Narendra Modi will disburse incentives worth around ₹2,400 crore under the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) at a special programme scheduled to be held at Vigyan Bhawan in New Delhi on June 19.
The disbursal marks a significant milestone for the Centre’s flagship employment-linked incentive programme, which was launched to accelerate job creation, promote formalisation of employment, enhance employability and expand social security coverage across the country. Since its launch, the scheme has already facilitated employment opportunities for nearly 15 lakh beneficiaries.
Under PM-VBRY, first-time employees entering the formal workforce are eligible to receive financial assistance of up to ₹15,000, providing critical support during the initial phase of their careers. The scheme also incentivises employers to generate new jobs by offering benefits of up to ₹3,000 per month for every additional employee hired.
The government has designed the scheme to encourage both workers and employers to participate in the formal economy while strengthening India’s social security framework. Recognising the manufacturing sector’s crucial role in driving economic growth and employment, the scheme offers extended benefits to manufacturing employers for a period of four years. Employers in other sectors can avail the incentives for two years.
The Prime Minister’s Office (PMO) said the scheme reflects the government’s commitment to fostering an enabling ecosystem for employment-led growth and ensuring that the benefits of India’s economic progress translate into quality formal employment opportunities for its youth.
PM-VBRY came into effect on August 1, 2025, with a total financial outlay of ₹99,446 crore. The ambitious programme aims to support the creation of more than 3.5 crore jobs over a two-year period. Of these, nearly 1.92 crore beneficiaries are expected to be first-time entrants into the workforce.
By linking incentives to employment generation and workforce formalisation, the scheme seeks to expand social security coverage while encouraging businesses to create sustainable jobs. The scheme is playing a transformative role in expanding formal employment, strengthening social security coverage, and advancing the vision of a Viksit Bharat.
