The Government of India has launched the PM Viksit Bharat Rozgar Yojana (PM-VBRY), an employment-linked incentive scheme that will launch on 1 August 2025. The expenditure involved in the scheme is approximately ₹99,446 crore, and it aims to create over 3.5 crore new jobs by July 2027. The scheme focuses on first-time employees and encourages formal hiring practices among employers across various sectors.
In this article, you will get detailed information about the PM Viksit Bharat Rozgar Yojana, its objective, eligibility and much more.
Overview
To help you consider the scale, duration, and benefits of this program, a close-up view can help you quickly understand the key elements. You can see the summary in the table below.
| Component | Description |
|---|
| Scheme Launch | From 1 August 2025 to 31 July 2027 |
| Total Outlay | ₹99,446 crore |
| Job Targets | 3.5 crore new jobs, including 1.92 crore first-time employees |
| Employee Benefit | One-month EPF wage up to ₹15,000 in two instalments |
| Employer Incentive | ₹1,000–₹3,000 per new hire per month for up to two years (four for manufacturing) |
| Eligibility Period | Employment starts between 1 Aug 2025 and 31 Jul 2027 |
| Eligibility Criteria | EPFO-registration, salary ≤ ₹1 lakh/month, six-month tenure |
What Is PM-VBRY (Employment-Linked Incentive Scheme)?
Approved by the Union Cabinet, PM-VBRY (previously called ELI Scheme) is expected to induce employment-led growth and inclusivity. The fiscal outlay and size represent the government's intent to shift towards employment-led growth as part of the Viksit Bharat mission. It focuses on youth, on increasing formal jobs, on formally creating jobs, and ensuring social security (through EPFO linkage).
Objectives
India's new employment-linked scheme is not just about providing financial assistance; it involves fundamentally changing the job market. Let us consider some of the principal objectives that signal a strategic push for growth on a grand scale.
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Support 1.92 crore first-time jobholders into the mandatory formal job market, where the majority entering employment are youth.
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Incentivise employers to create 3.5 crore new jobs over the following two years, while also enhancing job formalisation.
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Support the financial literacy and saving habits of first-time employees.
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Drive growth from the manufacturing and MSME sectors while extending all incentives.
Also Read: What Is The Difference Between EPF & EPS?
Part A: Incentive For New Employees
New employees who have registered with the Employees Provident Fund Organisation (EPFO) and earn less than ₹1,00,000 per month will be eligible for a one-time incentive of up to ₹15,000. The payment will be made in two parts; part 1 will occur after six months of continuous service. The second part will occur after twelve months of continuous service, and the employee will attend a financial literacy course. A proportion of the benefit will be deposited into a savings instrument to create an internal savings discipline for the employee.
Part B: Employer subsidy/incentive To Create More Jobs
Registered employers will be entitled to an incentive for taking on an employee as additional staff. The employer will receive a monthly payment for the new employee based on the employee's wages:
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₹1,000 for EPF Wages of a new employee up to ₹10,000.
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₹2,000 for Wages of a new employee between ₹10,001 and ₹20,000.
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₹3,000 for Wages of a new employee over ₹20,001 (up to ₹1 lakh).
The incentive lasts for two years per new hire; however, for hiring in the manufacturing sector, employers receive incentives for up to four years. Eligible establishments need to hire at least two (if under 50 employees) or five (if 50 or more).
Eligibility
Not everyone will be eligible for the scheme's incentives, as the scheme has specific eligibility rules. Check the list below to see if you meet the eligibility requirements.
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No previous EPFO registration - this counts as their new first job.
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Start working between 1 August 2025 and 31 July 2027.
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Continuous employment for six months and complete the mandatory financial literacy module, before being paid the second instalment.
Payment Method
When providing large-scale payments and benefits, transparency and efficiency are critical. So let’s see how the government plans to ensure you can receive payments securely and directly.
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DBT (Direct Benefit Transfer) will be used by the Employee Benefits, using the Aadhar Bridge Payment System (ABPS).
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Employer incentive amounts will be credited to their PAN-mapped bank accounts after successful hires and retention periods have been verified.
Also Read: 5 Major EPF Changes In 2025: Simplified Processes for Members
Socio-Economic Impacts And Additional Context
This plan has the aspiration of formalising the Indian labour population by maximising the number of EPFO or Provident Fund members, particularly among the youth. In order to provide hiring, the scheme wants to lay emphasis on areas that are high enough in levels of unemployment, job formalities, of employment. The manufacturing is made a priority that is supported on a long-term basis, which makes the industry grow. The topics of financial literacy are addressed to ensure that the long-term savings behaviour is instilled. Lots of people believe that this plan will ensure that informality in the labour market will be significantly minimised and the portion of people covered by social security will rise significantly.
Conclusion
The PM Viksit Bharat Rozgar Yojana represents a strong move towards employment-led economic development by supporting first-time employees and creating private sector employment through guaranteed incentive payments. Overall, it connects with longer-term intentions of youth empowerment, formalising the economy, and sustainable development. With considerable funding and distinct delivery mechanisms, the scheme will allow India's formal labour sector to expand significantly.
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