Pradhan Mantri Viksit Bharat Rozgar Yojana

Pradhan Mantri Viksit Bharat Rozgar Yojana: A New Era of Employment Generation

On 15 August 2025, Prime Minister Narendra Modi announced the launch of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY) during his Independence Day address from the Red Fort. With a financial outlay of nearly ₹1 lakh crore, the scheme is designed to boost employment generation and strengthen the formal labour market. Over the next two years, it aims to create more than 3.5 crore jobs, making it one of India’s most ambitious employment-linked incentive initiatives.

Objectives of PM-VBRY

The primary goal of the scheme is to promote job creation in the organised sector while ensuring that more workers are brought under the social security net of the Employees’ Provident Fund Organisation (EPFO).

Key objectives include:

• Encouraging first-time employees to join the formal sector.
• Supporting employers in hiring additional workers.
• Promoting financial literacy and long-term savings among employees.
• Strengthening the link between employment retention and social security.

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Incentives for Employees

Employees joining an EPFO-registered establishment for the first time after 15 August 2025, with a monthly salary of up to ₹1 lakh, will receive direct financial benefits.

• Cash Incentive: Up to ₹15,000, paid in two instalments.
  • First Instalment: After 6 months of continuous employment.
  • Second Instalment: After completing 12 months of service, along with a mandatory financial literacy module.
• Savings Promotion: A portion of the second instalment will be credited to a designated savings account to encourage future financial security.

This part of the scheme is expected to benefit around 1.92 crore first-time employees.

Incentives for Employers

Employers registered with EPFO who hire additional workers will also receive government support.

• Financial Incentive: Up to ₹3,000 per month per new employee.
• Duration of Benefit:
  • 2 years for most sectors.
  • 4 years for the manufacturing sector, to encourage large-scale job creation.
• Hiring Requirement:
  • Companies with fewer than 50 employees must hire at least 2 additional workers.
  • Companies with 50 or more employees must hire at least 5 additional workers.

This segment is expected to generate employment opportunities for nearly 2.6 crore individuals.

Eligibility and Application Process

The scheme has simplified procedures to ensure wide participation.

For Employees:

• Must create a Universal Account Number (UAN) linked with Aadhaar.
• Face authentication via the UMANG app is required.
• No separate application needed – eligibility is automatic for first-time EPFO registration.

For Employers:

• Must obtain an EPFO code through the Shram Suvidha Portal.
• Register on the EPFO employer login portal.
• Submit monthly Electronic Challan cum Return (ECR) with provident fund contributions.
• Maintain new hires for at least 6 months.

Payment and Benefits Delivery

• Employees: Cash incentives transferred directly to Aadhaar-linked bank accounts via Direct Benefit Transfer (DBT).
• Employers: Incentives credited every 6 months to PAN-linked company bank accounts.
• All payments are routed through secure digital platforms, ensuring transparency and accountability.

Impact and Significance

The Pradhan Mantri Viksit Bharat Rozgar Yojana is more than an employment scheme – it represents a structural reform in India’s labour market.

• Encourages formalisation of jobs by bringing more workers under EPFO.
• Strengthens MSMEs and manufacturing enterprises by reducing the cost of hiring.
• Promotes financial literacy and savings habits among young employees.
• Creates a bridge from Swatantra Bharat to Samriddha Bharat, reflecting India’s vision of self-reliance and prosperity.

Conclusion

The launch of the PM-VBRY marks a significant milestone in India’s employment policy. By incentivising both employees and employers, the government is addressing the dual challenges of job creation and workforce formalisation. If implemented effectively, the scheme could not only generate 3.5 crore new jobs but also empower millions of young Indians with financial security and long-term growth opportunities.

The Pradhan Mantri Viksit Bharat Rozgar Yojana is set to play a transformative role in shaping India’s labour market, reinforcing the nation’s journey toward becoming a Viksit Bharat (Developed India) by 2047.