The Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) is a landmark initiative by the Government of India launched in August 2025 to provide a strong boost to employment, formal job opportunities, and social security nationwide. Targeting both first-time employees and incentivizing employers—especially in manufacturing—the scheme seeks to create over 3.5 crore new jobs by July 2027, with a budget outlay of ₹99,446 crore.​

Scheme Overview

The PM Viksit Bharat Rozgar Yojana (PM-VBRY) is a government initiative launched in August 2025 to increase employment and formalize the workforce across India. The scheme runs until July 2027 and is implemented via the EPFO, using a dual approach: providing direct benefits to first-time employees and incentives for employers hiring new staff.

• Active period: August 1, 2025 to July 31, 2027
• Structure: Two main parts
  • Part A: Direct incentives for first-time employees entering formal work and EPFO for the first time
  • Part B: Employer incentives for hiring new staff, with additional benefits for manufacturing sector​
• Implementation: Through EPFO, digital systems using Aadhaar, PAN, and DBT for transparency​

Benefits Under PM-VBRY

Employees joining formal work for the first time can receive up to ₹15,000 as a one-time incentive, paid in two instalments. Employers receive monthly incentives (up to ₹3,000 per employee) to support new job creation, with longer support for manufacturing firms. Both sides benefit from increased social security and reduced job creation costs.

For Employees (Part A)

• Cash Incentives: Up to ₹15,000, paid in two instalments via Direct Benefit Transfer, to first-time formal jobholders who join EPFO after August 1, 2025​
• Disbursement: First instalment after 6 months’ service; second after 12 months and successful completion of a Financial Literacy Programme
• Savings Promotion: A portion deposited in a savings instrument/fixed deposit to encourage saving habits
• Social Security Entry: Direct EPFO registration ensures access to PF, pension, and insurance from day one​
• Salary Cap: Employees earning up to ₹1 lakh/month are eligible

For Employers (Part B)

• Monthly Incentive: Up to ₹3,000 per new employee per month (varies by salary slab)—paid for 2 years in general sectors, 4 years for manufacturing​
• Payment Model: Lump sum payments to employer’s PAN-linked account every six months if staff retained for minimum six months
• Workforce Expansion: MSMEs (<50 staff) must sustain at least 2 new jobs; large firms (50+) at least 5​
• Social security compliance: Benefits tied to EPFO registration and payroll formalization

Manufacturing Sector Focus

The manufacturing sector gets special attention, with incentives provided for a longer period (up to four years per employee, compared to two years in other sectors). This extended support encourages stable job growth and formal employment within India’s critical industrial base.​

• Extended Support: Manufacturing sector employers receive incentives for up to four years, directly encouraging longer-term job creation, higher retention, and investment in skilled manpower​

Detailed Eligibility Criteria

Eligible employees must join a formal, EPFO-registered establishment after August 1, 2025, earn no more than ₹1 lakh per month, and complete minimum required service and financial literacy training. Employers must be EPFO-registered, hire and sustain additional staff (minimum of 2 for small firms, 5 for large), and ensure jobs are retained for over six months.

Employees

• Must join formal work in an EPFO-registered establishment after 1 August 2025
• Must earn up to ₹1 lakh/month at the time of joining; should not have been an EPFO member before
• Aadhaar and bank account must be linked for DBT
• Must complete 6/12 months service and financial literacy​

Employers

• Must be registered with EPFO (existing or new, with relevant baseline employee count)
• For <50 employees: hire minimum 2 additional staff, retained for 6+ months
• For 50+ employees: hire minimum 5 new staff similarly retained
• New jobs must be created and sustained between August 2025 and July 2027​

Employer Perspective

Employers benefit from reduced hiring and retention costs, as government incentives offset extra expenses for new formal jobs. This makes workforce expansion less risky and motivates compliance, helping businesses—especially in manufacturing and MSMEs—grow sustainably.

• The scheme lowers the cost of expanding formal headcount, especially beneficial for MSMEs and manufacturing​
• EPFO-linked incentives make hiring and retention more viable and compliant​
• Long-term (4-year) support for manufacturers drives industrial growth, skill development, and supports “Make in India” aims

Employee Perspective

For employees, the scheme provides direct financial aid, access to formal sector employment, and immediate social security benefits (pension, provident fund, insurance). It opens up new job opportunities, creates job stability, and helps build financial literacy and savings habits for long-term security.

• First-time formal sector workers get immediate financial support, social security, and mandated financial literacy​
• Secure, stable jobs—reducing informal employment and offering career progression opportunities
• Workers learn the basics of money management and long-term savings, contributing to their financial stability​

Special Features & Compliance

PM-VBRY is fully digital, requiring Aadhaar and bank account linkage, and monitored through EPFO systems. The dual-incentive design strengthens formal job creation, workforce quality, and ensures that all eligible participants get the required benefits transparently and efficiently.​

• Dual incentives drive formalization, job stability, and improve overall workforce quality​
• Scheme is fully digital—registration, compliance, and benefit disbursement all online using Aadhaar, PAN, and EPFO systems
• Social security inclusion begins from the first day of new employment for eligible workers

Call to Action

If you are a young Indian stepping into the professional world or an employer seeking to expand and formalize your workforce, the PM Viksit Bharat Rozgar Yojana offers real financial advantages and nationwide security. Employees get cash support and immediate access to formal sector benefits. Employers receive significant cost offsets and long-term support, making hiring easier and sustainable—especially in manufacturing. Register on the EPFO portal to participate and shape the future workforce of developed India.

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