On India’s 79th Independence Day, Prime Minister Narendra Modi gifted the nation a powerful employment boost—Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY).
With a historic budget of ₹1 lakh crore, the scheme aims to create 3.5 crore jobs in just two years, empowering young Indians—especially first-time job seekers—and giving a hiring push to private sector companies.
The Government of India has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) to boost job creation, skill development, and manufacturing growth under the vision of Viksit Bharat @ 2047. Announced in the Union Budget 2024-25, this employment-linked incentive scheme benefits both employees (especially first-time workers) and employers who create sustained additional jobs.
This guide covers PM-VBRY’s eligibility, benefits, incentives, and application process in simple terms.
Key Highlights of PM-VBRY
- Launch Date: 1 August 2025
- Registration Period: 1 Aug 2025 – 31 Jul 2027
- Implemented by: Ministry of Labour & Employment through EPFO
- Coverage: All EPFO-registered establishments (including exempted establishments) across sectors, with special incentives for manufacturing
- Objective: Encourage formal jobs, support youth in their first job, promote skill-building, and boost manufacturing employment
Scheme Structure
PM-VBRY has two parts:
Part A – Support for First-Time Employees
- Who is eligible?
- Employees who have never been an EPFO member before.
- Join an EPFO-covered or exempted establishment between 01.08.2025 and 31.07.2027.
- Gross wage at joining ≤ ₹1 lakh/month.
- UAN must be Aadhaar face-authenticated via UMANG App.
- Incentive:
- Total up to ₹15,000 per employee.
- Paid in two instalments:
- After 6 months of continuous employment → Up to ₹7,500.
- After 12 months (and completion of Financial Literacy Course) → Remaining amount.
Part B – Incentives for Employers
- Encourages net additional job creation.
- Incentive Period: 2 years (all sectors) or 4 years (manufacturing).
- Eligibility Conditions:
- Must meet net additional employment threshold:
- If baseline < 50 employees → +2 employees
- If baseline ≥ 50 → +5 employees
- Applies only to First Timers and Re-joinees with gross wages ≤ ₹1 lakh.
- Must meet net additional employment threshold:
- Incentive Amounts (per additional eligible employee/month):
- EPF wage ≤ ₹10,000 → 10% of EPF wage (up to ₹1,000)
- ₹10,001 – ₹20,000 → ₹2,000
- Above ₹20,000 → ₹3,000
- Payment: Every 6 months via Direct Benefit Transfer to employer’s PAN/TAN-linked account.
How PM-VBRY Works – Example for Employers
Let’s say your company’s baseline is 50 employees.
- You hire 5 new eligible employees in September 2025 with EPF wages of ₹9,500, ₹15,000, ₹22,000, ₹18,000, and ₹12,000.
- You meet the threshold (Baseline +5).
- Incentive in 6 months:
- For ₹9,500 wage → ₹950/month × 6 = ₹5,700
- For ₹15,000 wage → ₹2,000/month × 6 = ₹12,000
- For ₹22,000 wage → ₹3,000/month × 6 = ₹18,000
- For ₹18,000 wage → ₹2,000/month × 6 = ₹12,000
- For ₹12,000 wage → ₹2,000/month × 6 = ₹12,000
Application & Claim Process
- For Employers:
- Ensure EPFO registration, PAN/TAN details, bank account linked to PAN/TAN.
- Maintain regular ECR filing with contributions.
- Track baseline & rolling average headcount.
- For Employees:
- Join an eligible establishment during the registration period.
- Complete Aadhaar face authentication on UMANG app.
- Stay in continuous employment for required months.
- Payment Method:
- Employees: Direct Benefit Transfer to Aadhaar-linked bank account.
- Employers: Direct Benefit Transfer to PAN/TAN-linked bank account.
Why PM-VBRY Matters
PM-VBRY offers mutual benefits:
- Employers: Reduce cost of hiring and onboarding, especially for manufacturing.
- Employees: Get financial support while learning on the job.
- Economy: Boosts formal employment, skilling, and manufacturing output.
Pro Tip:
Employers should start workforce planning early to maximise incentives. Young professionals should seek jobs in EPFO-covered companies to take advantage of this one-time financial boost.
