Prime Minister Disburses ₹2,400 Crore Incentive Under PM-Viksit Bharat Rozgar Yojana (PM-VBRY)

The Prime Minister disbursed approximately ₹2,400 crore as incentive support under the Prime Minister Viksit Bharat Rozgar Yojana (PM-VBRY). The scheme is a flagship initiative of the Government of India aimed at promoting formal employment, generating new job opportunities, and expanding social security coverage for workers across the country.

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¨     PM-VBRY is a nationwide employment initiative implemented by the Ministry of Labour & Employment through the Employees’ Provident Fund Organisation (EPFO).

¨     Approved by the Union Cabinet in July 2025, the scheme seeks to incentivise the creation of over 3.5 crore jobs over a two-year period (between 1 August 2025 and 31 July 2027), including about 1.92 crore first-time employees.

¨     The scheme has a total outlay of ₹99,446 crore and provides incentives to both first-time employees and employers generating additional employment.

¨     PM-VBRY is designed to act as a bridge between youth entering the workforce and industries seeking to expand employment while promoting workforce formalisation and social security.

Key Features of PM-VBRY

Part A: Support to First-Time Employees

¨     First-time employees registered with EPFO and earning up to ₹1 lakh per month are eligible for an incentive equivalent to one month’s EPF wage, subject to a ceiling of ₹15,000.

¨     The incentive is disbursed in two instalments—the first after six months of continuous service and the second after twelve months, subject to completion of a financial literacy programme.

¨     This component is expected to benefit around 1.92 crore first-time employees.

Part B: Incentives for Employers

¨     Employers generating additional employment are eligible for incentives of up to ₹3,000 per month per additional employee.

¨     The incentive is available for two years across sectors, while manufacturing units receive extended support in the third and fourth years to promote long-term job creation.

¨     The scheme is expected to incentivise the creation of nearly 2.6 crore additional employment opportunities.

Progress Achieved

¨     Under the scheme, nearly 70 lakh new jobs have been created so far, and an equal number of first-time employees have been brought under the ambit of social security.

¨     Around 20 lakh youth have completed six months in their first jobs under the scheme.

¨     Nearly 10 lakh beneficiaries have received incentives, with more than ₹2,000 crore transferred directly into their bank accounts.

¨     The government also notes that nearly 70 lakh new jobs have been created and around 70 lakh first-time employees brought under social security coverage.

Significance of the Scheme

¨     Employment Generation and Demographic Dividend: India’s large youth population can become a productive asset only through sustained job creation. PM-VBRY seeks to accelerate employment generation by reducing the cost of hiring for employers and facilitating labour-market entry for first-time workers.

¨     Formalisation of the Workforce: By linking incentives with EPFO registration, the scheme encourages a shift from informal to formal employment, expanding access to provident fund benefits and social protection.

¨     Strengthening Social Security: PM-VBRY integrates employment generation with social security expansion, ensuring that newly employed workers receive greater economic security and long-term financial protection.

¨     Boost to Manufacturing and Economic Growth: Extended incentives for manufacturing complement initiatives such as Make in India and support labour-intensive industrial growth, productivity enhancement, and export competitiveness.