Pradhan Mantri Viksit Bharat Rozgar Yojana, Objectives and Benefits

Context: Pradhan Mantri Viksit Bharat Rozgar Yojana was launched on the 79th Independence Day.

Pradhan Mantri Viksit Bharat Rozgar Yojana

The Pradhan Mantri Viksit Bharat Rozgar Yojana, also referred to as the Employment-Linked Incentive Scheme, was announced by Prime Minister Narendra Modi on 15 August 2025 under the “Viksit Bharat” vision for developing India by 2047. The Union Cabinet gave the go-ahead to the scheme on 1 July 2025 with a budget of almost ₹1 lakh crore and seeks to create more than 3.5 crore jobs between 1 August 2025 and 31 July 2027.

Incentives are offered under two parts – Part A (First-time employees) and Part B (Employers).

Part A – First-Time Employees

• Coverage: Employees registered with EPFO.
• Incentive: EPF wage support up to ₹15,000, released in two instalments:
  • 1st instalment after completing 6 months of service.
  • 2nd instalment after 12 months, subject to financial literacy programme completion.
• Eligibility: Salaried employees earning up to ₹1 lakh/month.
• Savings Component: A part of the incentive will be deposited in a savings/fixed account, withdrawable after a specified period, to promote saving habits.

Part B – Employers

• Coverage: Employers creating new jobs (salary up to ₹1 lakh).
• Incentive: Up to ₹3,000 per employee per month, available for 2 years.
• Condition: New jobs must be sustained for at least 6 months.
• Special Provision for Manufacturing: Incentives extend to the 3rd and 4th years.
• Job Creation Target: Expected to generate around 6 crore new jobs under Part B.

Incentive Payment Mechanism

• Employees: Paid through Direct Benefit Transfer (DBT) using Aadhaar-based Payment System (ABPS).
• Employers: Payments made into PAN-linked bank accounts.

Administration & Deployment

• The scheme is centrally managed by the Ministry of Labour and Employment, with coordination from the EPFO. An online portal—pmvbry.epfindia.gov.in—and assistance through the UMANG App allow employers and recipients to get themselves registered and monitor incentives.

State-Level Impact

• Gujarat seeks to generate 35–40 lakh jobs under the PM-VBRY, with a particular emphasis on formalising unorganised workers and increasing women’s workforce engagement in sectors such as textiles, services, construction, and IT.
• In Uttar Pradesh, the scheme has already spurred formal sector employment growth—6–8% higher—with more than 94,000 UAN registrations and 2,152 new businesses enrolling in the EPFO.

Oversight & Monitoring

• Labour Secretary Vandana Gurnani has stressed the need for convergence of the Labour and Statistics Ministries for impact assessment and data correctness under PM-VBRY.
• At the same time, Labour Minister Mansukh Mandaviya has exhorted employers and first-time workers to avail scheme benefits maximally for wider employment expansion.

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