The Pradhan Mantri Viksit Bharat Rojgar Yojana (PM-VBRY), the Centre’s flagship employment-linked incentive scheme, has completed one year of implementation, with more than 72 lakh first-time employees joining the formal workforce since its launch in August 2025. The scheme is aimed at promoting formal employment, expanding social security coverage and encouraging employers to create new jobs.
Launched for implementation from August 1, 2025, to July 31, 2027, PM-VBRY has a financial outlay of ₹99,446 crore. The scheme seeks to generate employment for over 3.5 crore people, including 1.92 crore first-time employees, through an Employees’ Provident Fund Organisation (EPFO)-linked framework.
The scheme provides incentives to both employees and employers to encourage workforce formalisation and sustained job creation.
Under the employee component, first-time employees earning up to ₹1 lakh per month are eligible for a one-time incentive equivalent to one month’s EPF wage, capped at ₹15,000. The incentive is released in two instalments—after six months of service and after completing twelve months of continuous service along with a financial literacy programme. A portion of the incentive is invested in a designated savings instrument to promote long-term financial security.
For employers, the scheme provides incentives of up to ₹3,000 per month for two years for every eligible additional employee retained for at least six months. In the manufacturing sector, the incentive is extended to the third and fourth years to encourage employment generation in labour-intensive industries.
According to the government, more than 15 lakh beneficiaries have already received employment-linked incentives under the scheme, while nearly 30 per cent of the beneficiaries are women, reflecting increased participation of women in formal employment.
The government said PM-VBRY complements the National Manufacturing Mission by encouraging employment in new and expanding industries while strengthening India’s organised labour market through EPFO registration and social security coverage.
The scheme is implemented through a fully digital platform integrated with the EPFO. Aadhaar-based authentication, Universal Account Numbers (UANs), Electronic Challan-cum-Return (ECR) filings and Face Authentication Technology through the UMANG app are used for beneficiary verification and seamless delivery of incentives.
Benefits are transferred directly into Aadhaar-linked bank accounts through the Direct Benefit Transfer (DBT) mechanism, while a dedicated PM-VBRY portal enables real-time monitoring of beneficiaries and sector-wise progress. The government is also conducting nationwide awareness campaigns through cross-functional teams comprising officials from the EPFO, Employees’ State Insurance Corporation (ESIC) and the Chief Labour Commissioner (CLC).
The government said the scheme is designed to encourage first-time employment, reduce hiring costs for employers and expand formal employment opportunities, thereby strengthening India’s workforce and supporting the country’s long-term vision of becoming a developed nation by 2047.
